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Do you want to provide your own passkey? Please check wiced_bt_dev_pass_key_req_reply() in wiced_bt_dev.h.
Also, see the implementation of function hci_control_send_user_confirmation_request_evt() in /20706-A2_Bluetooth/apps/demo/audio/headset/hci_control.c
Adding to previous response.
You may go through 6A.7.4 Handle Pairing in the attached doc and you try to integrate the same to your 20706 example.
Attached doc was part of WICED Academy which is available here: https://github.com/cypresssemiconductorco/CypressAcademy_WBT101_Files
It was developed for CYW20719 . However you can refer it for basic knowledge and implementations. Only thing is few APIs will be different for CYW20706.
Please note , in the link which I shared , latest lab manuals are ported to work with MTB . I think you can check the old updates in the Git repository and get WICED lab manuals .