What's new is full CTAP2 support in FIDO2. Passwordless with PIN code. This never worked at all.
2FA (FIDO1) has worked for a while yes. But it still requires a username and password and the token is only used for 2FA. But this is not what webauthn is. It's only a small subset that existed under the FIDO name before webauthn was designed and was basically grandfathered in. But it's not really what webauthn is about.
In full passwordless mode you insert the token, enter its pincode and touch it to login. No username nor password needed. It's a bit like a bank card.
Not many sites support this method, for example Paypal only supports normal old FIDO1 2FA (and only one token which is ridiculous). But this support is also needed to finally enable full passkeys in the future. This support is also needed to finally enable full passkeys in the future (I believe 1 or 2 things for that are still coming in a near-future version).