It deeply saddens me too.
But I think we shouldn't discard one of the obvious reason: the U2F system was too secure.
Let's not forget this: the original U2F system even had a way for the user to know if its device had been cloned, for they'd be using a counter. And they silently removed this.
When Apple+Google+MSFT team up to lower security, I'm pretty sure three-letters agencies and their backdoors aren't very far.
The whole concept of passkeys that can be copied around is honestly hilarious. FFS: we had the perfect solution...
I don't think it's only incompetence at work here: there has to be mischief or at least mischief shouldn't be discarded.