UPDATE: Thanks to @supermathie’s reply, I just downloaded Firefox and tried to register the Yubikey and it worked. I was able to register the same key which was giving an error in Chrome.
Interestingly, once registered on Firefox, I was able to log in using the same Yubikey on Chrome. I then repeated the same process once again on Chrome but got the same error, once again.
I think we can narrow down the problem somewhat.