With the FIDO applet installed, it is capable… however to be able to use it for local Windows computer authentication (log into Windows) you will need some 3rd party software… or… drink the Microsoft koolaid.
Microsoft has limited the ability to use security keys or tokens to log into Windows to Windows Pro systems that are attached to a domain (active directory) or Azure AD (cloud directory, possibly now called Entra ID because why not change it). I think they did this because they have some stupid ideas about 1) home users not having any interest in higher level security, and 2) they can make business types pay for higher level security.