For the past couple years I kept asking the same question: how does Microsoft plan to move everyone to passwordless when a brand new user cannot register a passkey in the first place?
Because that is the catch. Registering a passkey requires MFA, and a brand new user has nothing to complete MFA with. Temporary Access Pass was the way around it. It works, but issuing one per person is exactly the friction that sends organizations back to a phone number.
That is still how it works today. From mid-October 2026 it changes.
Previously, the wizard offers a phone number. That becomes method one, and it stays as the fallback nobody removes.