Hi Ritesh,
you need in first create a Disk encryption policy, where you set and enable the disk encryption:
The difference between require bitlocker and require encryption of data storage, take a look to this article:
[https://learn.microsoft.com/en-us/mem/intune/protect/compliance-policy-create-windows
"The Encryption of data storage on a device setting generically checks for the presence of encryption on the device. For a more robust encryption setting, consider using Require BitLocker, which leverages Windows Device Health Attestation to validate Bitlocker status at the TPM level."
Have a nice week end.