The in-band full-duplex (IBFD) wireless system is a promising candidate for 6G and beyond, as it can double data throughput and enormously lower transmission latency by supporting simultaneous in-band transmission and reception of signals. Enabling IBFD systems requires a substantial mitigation of a transmitter (Tx)’s strong self-interference (SI) signal into the receiver (Rx) channel. However, current state-of-the-art approaches to tackle this challenge are inefficient in terms of performance, cost, and complexity, hindering the commercialization of IBFD techniques. In this work, we devise and demonstrate an innovative approach to realize IBFD systems that exhibit superior performance with a low-cost and less-complex architecture in an all-passive module. Our scheme is based on meticulously combining polarization-division multiplexing (PDM) with ferromagnetic nonreciprocity to achieve ultra-high isolation between Tx and Rx channels. Such an unprecedented conception has become feasible thanks to a concurrent dual-mode circulator—a new component introduced for the first time—as a key feature of our module, and a dual-mode waveguide that transforms two orthogonally polarized waves into two orthogonal waveguide modes. In addition, we propose a unique passive tunable secondary SI cancellation (SIC) mechanism, which is embedded within the proposed module and boosts the isolation over a relatively broad bandwidth. We report, solely in the analog domain, experimental isolation levels of 50, 70, and 80 dB over 340, 101, and 33 MHz bandwidth at the center frequency of interest, respectively, with excellent tuning capability. Furthermore, the module is tested in two real IBFD scenarios to assess its performance in connection with Tx-to-Rx leakage and modulation error in the presence of a Tx’s strong interference signal.