How to prevent User sign-ups using passwordless using the 'Pre User Registration' hook?

How to prevent User sign-ups using passwordless using the ‘Pre User Registration’ hook?
I setup a hook that calls an api endpoint I have that checks whether a user is allowed to sign up or not. Looks like its not being triggered/called for passwordless signups.

Pre-User Registration hooks currently only run for Database Connections. For passwordless connections, any checks should be done in Rules. Although this will create the user in Auth0, you can respond with an Unauthorized error to prevent certain users logging in.