Hi Thomas,
I'm Sumit, here to answer your query at the Microsoft Community.
You would need to replace the TPM chip as it is a requirement for Windows 11, and most likely you won't get future updates in case Windows boots.
Wether Bitlocker or Device encryption is not enabled, you should backup your recovery key from https://aka.ms/myrecoverykey immediately if asked. If you have it, it is fine. Please note that Bitlocker is different from DI but uses the same technology.
Hope this helps.