Did Microsoft change something?

This company I started working for almost 5 years now is in hybrid-mode.

3 years ago, I setup Entra/Control Access policies for 365, and added a few people to use the MS MFA app and Passkeys, including myself. This has worked without issue, so if my passwords expired and I change it, I was able to MFA activate my office if I was remotely connected through RDP.

Now if choose use a different method from the start and select MFA, I do the handshake and then Office tells me I need to do the passkey verification, when I try that I am told I am not next to the computer; I guess it means I to be in the same office building as the computer? Because if I go in the office and try it works. So, what the heck?

I haven't had time to check Entra this morning, are there new changes MS has made without warning anyone?

Thanks,