Is it possible that there are 2 different PIN’s at play here?
My understanding is that with yubikey-luks when you setup the PIN (or passcode) + key to decrypt this PIN (or passcode) is separate from the Edit PIN for the key and is really more like a SALT that gets hashed with the OTP from the key to decrypt and in turn there would be no trial limit.
It is also my, potentially flawed, understanding that the hardware keys have the edit PIN which is used to make changes to the key but is completely independent of using the key for normal verification.
Again this is my understanding of how this works but I am far from an expert and in turn am asking if this is possible NOT saying this is what’s happening.