@Kashish Goyal, Thanks for posting in Q&A. Yes, your understanding is correct. When a TPM startup PIN or startup key is required on a device, BitLocker can't silently enable on the device, and instead requires interaction from the end user. Here is a link with more details:
https://learn.microsoft.com/en-us/mem/intune/protect/encrypt-devices#tpm-startup-pin-or-key
Hope the above information can help.
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