Microsoft has finally managed to resolve a bug related to BitLocker encryption reporting. The issue was first confirmed in October last year, and it has finally been fixed on Windows 11 21H2.
To fix the “Cannot install Windows, BitLocker Drive Encryption is enabled on selected partition” error, suspend BitLocker via Settings or Control Panel, or use your recovery key to unlock the drive.
Microsoft warned customers this week of incorrect BitLocker drive encryption errors being shown in some managed Windows environments. According to Redmond, this known issue affects only client ...