Recently I came across an issue turning on BitLocker with the error

BitLocker Drive Encryption cannot be applied to this drive because there conflicting Group Policy settings for recovery options on fixed data drives.

Also got the error before starting the troubleshooting

You can’t create both a recovery password and a recovery key

The policy to enable and enforce BitLocker is set on Intune/Endpoint Configuration Manager and the device has been refreshed (auto-pilot).

The device used to already have BitLocker enabled before the refresh process and re-assignment to another user.

After some troubleshooting and investigation, it was found that a registry key was the root cause of this ‘so called conflict’

HKEY_LOCAL_MACHINESOFTWAREPoliciesMicrosoftFVE

with the below values

“FDVRecoveryPassword”=dword:00000000

“FDVRequireActiveDirectoryBackup”=dword:00000001

The FVE key is not created by Intune policy and should not be present when BitLocker is managed by Intune.

Deleting the complete FVE key solved the problem.