Ory is the largest open source community in the world for cloud software application security. We maintain advanced open source security software solving authentication, authorization, access control, application network security, and delegation. Ory implements a variety of industry and best-practice standards including OAuth 2.0 / OAuth 2.1, OpenID Connect, Zero Trust Networking, Google Zanzibar Policy Framework, FIDO2 U2F, WebAuthn, TOTP, and more.

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does the ory ecosystem support physical hardware authentication?

also maybe this is on purpose, but I only find links which point to Ory's cloud products -- <https://www.ory.sh/multifactor-authentication/>

but I am looking for help on a self deployed instance

here you go: <https://www.ory.sh/docs/kratos/self-hosted/mfa>

You can also take a look at the e2e tests on how to set this up:
<https://github.com/ory/kratos/blob/master/test/e2e/cypress/integration/profiles/passwordless/flows.spec.ts>
<https://github.com/ory/kratos/tree/master/test/e2e/cypress/integration/profiles/mfa>