My team is also experiencing this issue. Submitted a support ticket with case ID 102371908508. We integrated passkeys recently and are also seeing ~5% of users encountering this failure reason. I'm able to recreate occasionally by deleting the app, reinstalling, and then quickly attempting to log in with a passkey.
@Apple Designer Is this issue still being worked on? It is present even in the latest iOS 18 betas.
EthanTheAppInnovator
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I have: FB14714997
I also created a PR on the swift-foundation GitHub repo: https://github.com/apple/swift-foundation/pull/834
Thanks! That's very helpful.