Yubikey is here since 2007... and Windows 10 still doesn't support passwordless, security key only! login. They want you to register a goddamn MS account too...
Windows has supported smartcard logins since at least 2000, should work fine with yubikeys too. https://support.yubico.com/hc/en-us/articles/360013707820-Yu...
However, Windows Hello in Windows 10 does not support local logins with security keys. This may have changed last week with a recent update, but it definitely wasn't supported when I installed Windows last Christmas.
I think it's Microsoft's opinion that security keys are too secure for consumer use; if a consumer is locked out of their personal device due to mismanagement, theft or loss of a hardware key, that's a support headache and liability burden that they're unwilling to take on at this point.