That quote is referring to the mechanism for backing up passkeys that only exist on a hardware security key, which deliberately does not exist. Moving keys onto a security key is possible for some devices, but that is a deliberate compromise, as these devices are designed to generate their own keypairs and never leak secret key material (thus preventing backups).

Ops, I may have misinterpreted. I read it as take a passkey and copy/store it inside a hw sec key. Thanks for clarifying!