For Azure AD yes you can disable ‘Enforce Attestation’ more info here - Error adding Yubikey to Security Info - Microsoft Q&A
Currently Azure AD only supports security keys from a handful of providers and even that seems to sometimes not work with ‘Enforce Attestation’ enabled.
For the 2nd issue with Chrome and Microsoft account, this is a legitimate issue caused by new version of Chrome. A fix will be included in the next OnlyKey firmware update.