When logging into the website from a Mac using passkey from a nearby device, the session said a local connection will be constructed and both the device will connect to a relay server.
First, the client shows a QR code, which the authenticator scans. This QR code contains a URL that encodes a pair of single-use encryption keys. Then, the authenticator produces a Bluetooth advertisement containing routing information for a network relay server. This local exchange allows selecting a server and sharing routing information, but also serves two additional functions.
Once the local exchange and key agreement have happened, the two devices connect to a relay server picked by the phone. From there, they perform a standard FIDO CTAP operation, which is encrypted using the keys from earlier, so the relay server can't see anything that's going on.
My question is what the relay server actually is? Is it the web browser or a server running on the nearby device?