No, this will force you to either install Microsoft Edge on your phone or switch to one of the many other password managers that do offer autofill on iOS.
If you weren't synchronising your passwords through the Microsoft authenticator app, you won't be affected at all. If you were, Microsoft has decided to be annoying and make you install their browser to get password autofill support back.
Microsoft prefers synchronising passkeys between devices because passkeys are immune to credential stuffing attacks, but you don't have to do what Microsoft wants.
If you weren't synchronising your passwords through the Microsoft authenticator app, you won't be affected at all. If you were, Microsoft has decided to be annoying and make you install their browser to get password autofill support back.
Microsoft prefers synchronising passkeys between devices because passkeys are immune to credential stuffing attacks, but you don't have to do what Microsoft wants.