Hi
According to the Apple post, you can achieve the same by the below steps:
1. Login as local admin
2. Bring up terminal (which you can search "terminal" to get it)
3. In the terminal session, please copy and paste the below command exactly (or you can type for it):
sudo defaults write /Library/Preferences/com.apple.security.smartcard DisabledTokens -array
com.apple.CryptoTokenKit.pivtoken
4. After that it should be disabled. Which you can logout and try again.
Hope this helps.
Best Regards,
Albert