We use keys + Yubikey 2FA (the long alphanumeric strings when you touch the Yubikey) at work, alhough they want to move all 2FA to Yubikey FIDO2/WebAuthn in the future since regular numeric/text 2FA codes are vulnerable to phishing. All our internal webapps already require FIDO2, as does our email (Microsoft 365).
I'm surprised they'd expire the SSH keys rather than just requiring the password for the key to be rotated. I guess it's not too bad if the key itself is automatically rotated.
It would be more secure to have SSH keys that are stored on Yubikeys, though. Get the Yubikeys that check fingerprints (Yubikey Bio) if you're extra paranoid.