@IniobongNkanga-8038, Thanks for posting in Q&A. From your configuration, I notice the Microsoft product updates and Windows drivers are disabled. Quality update and Feature update deferral period (days) are both set 0 days which means Feature update and Quality update will not deferred. That is to say, the device will the updated when it releases. I find we also set to disable upgrading windows 10 to windows 11. Automatic update behavior is set to reset to default, Windows will automatically determine active hours for the device. Using the active hours, Windows then schedules the best time to install updates and restart the system after updates install. For "Option to pause Windows updates" and Option to check for Windows updates, when it is set disable, it means the users are prevented from pausing the installation of an update and accessing the Windows Update scan. for the configuration, it will not stop the device receiving Quality and Feature updates. It can only precent users to choose check updates.
https://learn.microsoft.com/en-us/mem/intune/protect/windows-update-settings
If you want to stop the devices to receive any updates, you can turn off auto update in Settings Catalog policy instead of deploying windows update ring policy.
https://learn.microsoft.com/en-us/windows/client-management/mdm/policy-csp-update#allowautoupdate
Meanwhile, for your question about asking BitLocker key, based on my researching, I find some user also mentioned when install one windows 11 update, it asks for BitLocker key. You can try the suggestions in the following link to see if it can help. However, if the issue still persists after trying these suggestions, you can contact windows support to get help on this.
https://technclub.com/guides/windows-11-asking-bitlocker-recovery-key-after-update-fix/
https://windowsreport.com/windows-11-asking-for-bitlocker-recovery-key/
Note: Non-Microsoft link, just for the reference.
Hope the above information can help.
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