After setting up the Security Key, you have to insert the USB Security Key every time you want to log into your system. But for some reason, if you want to remove it, you can do so via Windows 11 ...

The simplest and most direct way to permanently delete files or folders is by using the Shift + Delete keyboard shortcut.

If Windows Update says your computer doesn't meet the Windows 11 requirements, you might just need to tweak some settings.