A part of Apple’s long term, multi-stage deployment to phase out passwords entirely. They announced it last year during WWDC and said it will be messy and not without hurdles, but they’re committed to having strong cryptography without need for password at all.
Related: https://www.wired.com/story/apple-passkeys-password-iphone-mac-ios16-ventura/
A far cry from what Google is trying to do or their long term plans (we all know Google is trying to siphon more ad revenue).
Google’s proposition is as bad for Apple as it is for the rest of us.