Hi Christopher,
Thanks for your post.
0x80090016 means TPM operation failed or was invalid. This issue was probably caused by a corrupted sysprep image. I suspect when doing the clearing TPM, it would create a sysprep image, make sure to use a computer that isn't joined to or registered in Microsoft Entra ID or hybrid Microsoft Entra ID.
BitLocker and TPM: other known issues - Windows Client | Microsoft Learn Windows Hello for Business mitigation plan for vulnerability in TPM - Microsoft Support
Best Regards,
Ian Xue
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