Since you can not accept your own fix as the answer, I have added here. If you desire, please mark this as the answer so others can benefit. thank you.
FYI, passkey enrollment is possible at the time of logging-in the problem was with the AAGUID, I was needed to add AAGUID based on the Yubikey model on Authentication Strengths and then, I didn't see any error while enrolling key from user's side.
Thank You