WPT details: https://wpt.fyi/results/fedcm/third-party-iframe?label=experimental&label=master
Currently, FedCM always shows the toplevel site in its UI. This works well when the iframe is conceptually first-party (e.g. foo.com may have an iframe foostatic.com, which is not meaningful to the user). But if the iframe is actually third-party, it would be better to make it possible to show the iframe origin in the UI so that the user better understands who they are sharing their credentials with. For example, a photo editor may be embedded in a book publishing web app and may want to let users access files they have previously stored with the photo editor. This proposal allows doing so.
See https://github.com/w3c-fedid/FedCM/issues/725 for more discussion on the motivation
Explainers: https://github.com/w3c-fedid/FedCM/issues/449#issuecomment-1515631336