We submitted ticket to MS for this issue and we were told that we need to totally turn off WIP, leaving only MDM on within Entra.
Go to your entra home page, and open the "Mobility..." Service by searching for it in the top - should show up as "Mobility (MDM and WIP)"
Or you can just open this direct shortcut to that spot: https://entra.microsoft.com/#view/Microsoft_AAD_IAM/MdmList.ReactView
Now open "Microsoft Intune", and ensure the top "MDM" function is set to "ALL" and that the bottom section for "WIP" is set to "None".
We are still trying to verify if this actually fixes the issue for everybody without breaking anything for anybody else, but that is what MS suport told us to do.