Since FIDO UAF is now supported by browsers too is there any difference? Multiple IAM vendors don't support FIDO2 and support UAF only, so curious to know if industry security leaders are not adopting it, what is the real benefit of the updated standard ?
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FIDO UAF is not a web exposed protocol. It is used inside of native mobile apps, typically for biometric authentication for same party services.
Use of passkeys via FIDO2/WebAuthn is the recommended path for general use, unless you have a very specific use case (highly regulated, banking, etc) that would call for UAF.