iPhone Quick Start (wireless transfer of data) not working on managed (Intune) phones

Question

Our iPhones are managed through Apple Business Manager and inrolled through MS Intune.

iPhones are 13, 14 ,15, 16 -- iOS 18.6.

We used to use iPhone Quick Start (instant wireless transfer of data from unit to unit) when enrolling new phone for an user. That way, their full (private) content is preserved when set up on their new business phone.

Lately Quick Start is no longer working correctly. When set up, the phone activates (MS log in with user credentials) and user is presented with the option to transfer data with either iCloud or a local backup (Mac).

The option for simple wireless transfer (Quick start) is not present. Apple Support claims that a policy must have been set to prevent this in Intune, but our only policies regards "copy paste data managed apps" and "Password polices".

Note. We also have an "Block users from enrolling personal devices". This policy is set to "No" under iOS restrictions.

Any hints or thoughts?