The UI for entering a passcode from a hardware token is different depending on what Duo application it is and how the prompt is delivered.
Generally, you shouldn’t expect to see the OTP hardware token as an explicit choice in Duo traditional prompt and Windows Logon. You just choose the “Enter a passcode” option and then enter the passcode from the token (or any other type of OTP code).
The Duo Universal prompt does show hardware token as an explicit option amongly all available methods: