Earlier quoted context omitted.
>Currently you need remember to register at least 2 security keys, in case one is lost/misplaced. This is always my issue with 2FA or passwordless auth. You're forced to have 2 devices and are kind of screwed if you don't hvae two on you. I was on a trip and broke my iPhone. It had my plane tickets on it to get home. I was able to get a replacement from Apple, they just gave it to me and sent me on my way. When I tur…
Apple’s implementation uses SMS as a backup. Thinking is probably that if you only have one device, it’s usually your phone; so you would have been able get your 2FA code via text. It’s not easily discoverable though, so easy for you to miss it.
The decryption keys for that data are only stored on your iDevices. It's E2EE after all. So while you can access your Apple account via the SMS 2FA backup, you won't be able access your actual iCloud Keychain data/passkeys without some sort of access to your iDevices. (it might be sufficient if they're online somewhere and you have their login credentials?)
A bit confusing, but if it really is E2EE, then you can see why SMS alone wouldn't be enough to recover your Passkeys.