I think the issue is likely that the password is used for decryption. What would be perfect is if upon enabling Two-password mode, there is an option to forgo the login password+mfa followed with the decryption password and just go straight to passwordless login followed by the decryption password. Then two-password mode would become passwordless login followed by password decryption.
That's the UX that I would hope for but I assume it can't/won't happen until all the various apps on all platforms support passkeys.
I think the issue is likely that the password is used for decryption. What would be perfect is if upon enabling Two-password mode, there is an option to forgo the login password+mfa followed with the decryption password and just go straight to passwordless login followed by the decryption password. Then two-password mode would become passwordless login followed by password decryption.
That's the UX that I would hope for but I assume it can't/won't happen until all the various apps on all platforms support passkeys.