Initializing first time set-up on a new device with work account

I have a full set-up Microsoft work account. Initially went through Identity pass and successfully added my Microsoft authenticator. I have a personal password, and when I sign onto new devices, I can use my authenticator with the QR code that pops up, later generating "Hello pins".

My issue comes with this one desktop at work. I have not signed onto it before. I put in my credentials like usual, all correct. Selecting "Other user" then "Web sign-in" using my email. It allows me to use my password, but once moved onto the next step it prompts a "Windows Security" window that says "Sign in with passkey" "Security key - Passkey for login.microsoft.com" "Insert your security key into the USB port." "Requested by Windows Explorer (Microsoft Windows)"

It does not give me the option to use my Microsoft authenticator. It only allows for me to "Verify your identity" through "Use a certificate or smart card" or "Face, fingerprint, PIN, or security key". I do not have any other options to Verify myself besides my MFA Microsoft Authenticator, password, and Hello pins I set for each station.

What can I do to sign onto this Desktop? I have reconfigured it and set it up as a new PC. Ran the updates and restarted it. But it will not prompt me or other users to verify their identity with any other options than "Use a certificate or smart card" or "Face, fingerprint, PIN, or security key".

NOTE: Desktop does not have a camera or biometric reader attached or assigned to it.