Passwords is the name of the app on your Mac.

OK, on the one hand TIL -- thank you! That's a super-meaningful piece of information.

On the other hand, you can understand why that is not remotely clear from the message. It's a generic term in quotes. If it said it would be saved "in the Passwords application (and synced to iCloud)", then I'd actually understand it.

So Apple is either being intentionally obtuse or incompetently confusing here, and I don't know which is worse. And it's UX crap like this which is why I still won't use passkeys, because I don't know where anything is going.