As someone shopping for physical 2FA tokens right now, do you have any recommendations?
Just use FIDO2. I have no idea why OP is trying to use the YubiKey OTP protocol, which is legacy.
Now that FIDO2 has been mentioned as something that solves this issue, it turns out there's another tool called the "YubiKey Manager", which allows you to configure/toggle various "applications" on a key, including Yubico OTP and FIDO2.