Getting the system log working solved my root problem with a helpful message from com.apple.AuthenticationServices.Helper that my ASPasskeyRegistrationCredential was missing a required flag. Setting Backup Eligible and Backup State authData flags to 1 allowed my registration to succeed.
Note sure why I didn't find anything on my first look at System Log. Originally, my AutoFill extension was attached to a Made for iPad StoryBoard app, but that was not entirely functional on the Mac. After I attached to a container app for native Mac it worked correctly and I found the log message, though some generated within my extension still seemed to be missing and some parts were redacted.
Other point that threw me off was the iOS version was not showing my UI after I hit the Continue button. I didn't care because the data dumps I was interested in were in the prepareInterface call. Eventually, I realized that tap Continue a second time would prepareInterface again and then show my extension view. I think maybe this is a timing issue related to debugger attaching. About 1 in 10 times it would go to the view with a single Continue tap. This is all proof of concept right now, so probably can fix if need be. Or, maybe just goes away in release.