@Redistro Thanks for posting in our Q&A.
Based on my research, someone said this error appears when you make changes regarding BitLocker in the Local Group Policy Editor or Registry Editor. For more details, please refer to the following link:
https://www.thewindowsclub.com/group-policy-settings-for-bitlocker-startup-options-are-in-conflict
Note: Non-Microsoft link, just for the reference.
So, before you deployed intune policy to encrypt this device, did you make changes about Bitlocker manually in the Local Group Policy Editor or Registry Editor?
And did this issue only occur in windows 11 autopilot enrolled device? Or all devices?
If there is anything update, feel free to let us know.
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