Unable to sign up via passkeys but can log in with Webauthn -> Passkeys

[eadwu]

Preflight checklist

• I could not find a solution in the existing issues, docs, nor discussions.
• I agree to follow this project's Code of Conduct.
• I have read and am following this repository's Contribution Guidelines.
• I have joined the Ory Community Slack.
• I am signed up to the Ory Security Patch Newsletter.

Ory Network Project

No response

Describe the bug

Trying to sign up using passkeys fails but passwordless webauthn works.

However trying to sign in using the passkey method with the passwordless webauthn also works.

There shouldn't be a configuration error as config.rp for both passkey and webauthn are the same. The error I get from trying to sign up using passkeys is

your device can't be used with this site 
localhost may require a newer or different kind of device

Reproducing the bug

docker-compose -f quickstart.yml -f quickstart-standalone.yml up --build --force-recreate after applying the following patch on top of 68693a4

diff --git a/contrib/quickstart/kratos/passkey/kratos.yml b/contrib/quickstart/kratos/passkey/kratos.yml
index 776b17e3c..55a558664 100644
--- a/contrib/quickstart/kratos/passkey/kratos.yml
+++ b/contrib/quickstart/kratos/passkey/kratos.yml
@@ -100,7 +100,7 @@ hashers:
 identity:
   schemas:
     - id: default
-      url: file://contrib/quickstart/kratos/passkey/identity.schema.json
+      url: file:///etc/config/kratos/identity.schema.json
 
 courier:
   smtp:
diff --git a/quickstart-standalone.yml b/quickstart-standalone.yml
index 8c7992842..a9878bab5 100644
--- a/quickstart-standalone.yml
+++ b/quickstart-standalone.yml
@@ -7,4 +7,4 @@ services:
     environment:
       - PORT=4455
       - SECURITY_MODE=
-      - KRATOS_BROWSER_URL=http://127.0.0.1:4433/
+      - KRATOS_BROWSER_URL=http://localhost:4433/
diff --git a/quickstart.yml b/quickstart.yml
index 10a331c39..d9d679d23 100644
--- a/quickstart.yml
+++ b/quickstart.yml
@@ -10,7 +10,7 @@ services:
         target: /var/lib/sqlite
         read_only: false
       - type: bind
-        source: ./contrib/quickstart/kratos/email-password
+        source: ./contrib/quickstart/kratos/passkey
         target: /etc/config/kratos
     command: -c /etc/config/kratos/kratos.yml migrate sql -e --yes
     restart: on-failure
@@ -20,7 +20,7 @@ services:
     image: oryd/kratos-selfservice-ui-node:v1.2.0
     environment:
       - KRATOS_PUBLIC_URL=http://kratos:4433/
-      - KRATOS_BROWSER_URL=http://127.0.0.1:4433/
+      - KRATOS_BROWSER_URL=http://localhost:4433/
       - COOKIE_SECRET=changeme
       - CSRF_COOKIE_NAME=ory_csrf_ui
       - CSRF_COOKIE_SECRET=changeme
@@ -45,7 +45,7 @@ services:
         target: /var/lib/sqlite
         read_only: false
       - type: bind
-        source: ./contrib/quickstart/kratos/email-password
+        source: ./contrib/quickstart/kratos/passkey
         target: /etc/config/kratos
     networks:
       - intranet

Relevant log output

No response

Relevant configuration

No response

Version

68693a4

On which operating system are you observing this issue?

Linux

In which environment are you deploying?

Docker Compose

Additional Context

Since the passwordless webauthn works for the passkey login, signup via passkey should also be possible?

Expectation is that there would be a similar QR code as with the webauthn route? Or does the passkey here imply signing up directly from a passkey compatible device?