Passkeys in Bluetooth-restricted environments

For passkey cross-device authentication scenarios, both the Windows device and the mobile device must have Bluetooth enabled and connected to the Internet.

For passkey cross-device authentication scenarios, both the Windows device and the mobile device must have Bluetooth enabled and connected to the Internet. This allows the user to authorize another device securely over Bluetooth without transferring or copying the passkey itself.

Some organizations restrict Bluetooth usage, which includes the use of passkeys. In such cases, organizations can allow passkeys by permitting Bluetooth pairing exclusively with passkey-enabled FIDO2 authenticators.

To limit the use of Bluetooth to only passkey use cases, use the Bluetooth Policy CSP and the DeviceInstallation Policy CSP.

For more information please refer to Microsoft Windows Support Article