Device Encryption relies on Microsoft account or external USB
As Microsoft explains in its documentation, Device Encryption uses BitLocker to encrypt the data applied to all system drives. You must backup your BitLocker key to your Microsoft account or save it to an external USB disk. Without this, you cannot access your data.
Windows can request the BitLocker recovery key while resetting or reinstalling the operating Windows can request the BitLocker recovery key while resetting or reinstalling the operating system. However, procuring the recovery key can be challenging if the feature is enabled without the user’s approval. If you lose access to your Microsoft Account, you will also lose access to the PC.
This, from what I understand, rolls out with the next update Windows 11 24H2 Perhaps in the fall of 2024.
https://www.windowslatest.com/2024/05/08/microsoft-confirms-windows-11-24h2-turns-on-device-encryption-by-default/