I got an answer from yubikey support.
It seems that my keys have firmware that is to old.
To use residential keys you need to have a YubiKey with credential management, 
this was added in Firmware 5.2.3 
This bug report can be closed.

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https://bugs.launchpad.net/bugs/1950473

Title:
  SSH keygen, Key enrollment failed: requested feature not supported

Status in openssh package in Ubuntu:
  New

Bug description:
  Bug report:
  lsb_release -a
  No LSB modules are available.
  Distributor ID:       Ubuntu
  Description:  Ubuntu 21.10
  Release:      21.10
  Codename:     impish

  uname -r
  5.13.0-21-generic

  Yubikey device: yubikey 5 NFC

  ssh -V
  OpenSSH_8.4p1 Ubuntu-6ubuntu2, OpenSSL 1.1.1l  24 Aug 2021

  Dmesg output:
  21.960057] usb 1-3: new full-speed USB device number 4 using xhci_hcd
  [   22.296859] usb 1-3: New USB device found, idVendor=1050, idProduct=0407, 
bcdDevice= 5.12
  [   22.296869] usb 1-3: New USB device strings: Mfr=1, Product=2, 
SerialNumber=3
  [   22.296873] usb 1-3: Product: YubiKey OTP+FIDO+CCID
  [   22.296876] usb 1-3: Manufacturer: Yubico
  [   22.296879] usb 1-3: SerialNumber: 0009031500
  [   22.331164] input: Yubico YubiKey OTP+FIDO+CCID as 
/devices/pci0000:00/0000:00:01.3/0000:02:00.0/usb1/1-3/1-3:1.0/0003:1050:0407.0004/input/input19
  [   22.388838] hid-generic 0003:1050:0407.0004: input,hidraw3: USB HID v1.10 
Keyboard [Yubico YubiKey OTP+FIDO+CCID] on usb-0000:02:00.0-3/input0
  [   22.396252] hid-generic 0003:1050:0407.0005: hiddev2,hidraw4: USB HID 
v1.10 Device [Yubico YubiKey OTP+FIDO+CCID] on usb-0000:02:00.0-3/input1

  lsusb -v 2>/dev/null | grep -A2 Yubico | grep "bcdDevice" | awk '{print $2}'
  5.12 ( Yubikey firmware )

  Tried with the key pin:
  ssh-keygen -t ed25519-sk -O resident -vvv
  Generating public/private ed25519-sk key pair.
  You may need to touch your authenticator to authorize key generation.
  Enter PIN for authenticator:
  debug3: start_helper: started pid=2678
  debug3: ssh_msg_send: type 5
  debug3: ssh_msg_recv entering
  debug1: start_helper: starting /usr/lib/openssh/ssh-sk-helper
  debug1: sshsk_enroll: provider "internal", device "(null)", application 
"ssh:", userid "(null)", flags 0x21, challenge len 0 with-pin
  debug1: sshsk_enroll: using random challenge
  debug1: sk_probe: 1 device(s) detected
  debug1: sk_probe: selecting sk by touch
  debug1: ssh_sk_enroll: using device /dev/hidraw4
  debug1: ssh_sk_enroll: /dev/hidraw4 does not support credprot, refusing to 
create unprotected resident/verify-required key
  debug1: sshsk_enroll: provider "internal" returned failure -2
  debug1: ssh-sk-helper: Enrollment failed: requested feature not supported
  debug1: ssh-sk-helper: reply len 8
  debug3: ssh_msg_send: type 5
  debug1: client_converse: helper returned error -59
  debug3: reap_helper: pid=2678
  Key enrollment failed: requested feature not supported

  Tried with touching the key:
  $ ssh-keygen -t ed25519-sk -O resident -vvv
  Generating public/private ed25519-sk key pair.
  You may need to touch your authenticator to authorize key generation.
  Enter PIN for authenticator:
  debug3: start_helper: started pid=2681
  debug3: ssh_msg_send: type 5
  debug3: ssh_msg_recv entering
  debug1: start_helper: starting /usr/lib/openssh/ssh-sk-helper
  debug1: sshsk_enroll: provider "internal", device "(null)", application 
"ssh:", userid "(null)", flags 0x21, challenge len 0 with-pin
  debug1: sshsk_enroll: using random challenge
  debug1: sk_probe: 1 device(s) detected
  debug1: sk_probe: selecting sk by touch
  debug1: ssh_sk_enroll: using device /dev/hidraw4
  debug1: ssh_sk_enroll: /dev/hidraw4 does not support credprot, refusing to 
create unprotected resident/verify-required key
  debug1: sshsk_enroll: provider "internal" returned failure -2
  debug1: ssh-sk-helper: Enrollment failed: requested feature not supported
  debug1: ssh-sk-helper: reply len 8
  debug3: ssh_msg_send: type 5
  debug1: client_converse: helper returned error -59
  debug3: reap_helper: pid=2681
  Key enrollment failed: requested feature not supported

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