Back in October 2023, Microsoft confirmed an issue that was affecting all Windows client versions, be it on Windows 11 (22H2, 21H2), Windows 10 (22H2, 21H2, and Enterprise LTSC 2019), and later Windows 11 23H2 was consequently affected too. The bug was related to BitLocker CSP encryption reporting. The BitLocker configuration service provider (CSP) is used by the enterprise to manage the encryption of PCs and devices.
"65000" error code was being displayed in the "Require Device Encryption" setting on Intune for Mobile Device Management (MDM). The tech giant noted that other than Intune, similar third-party apps may be affected too.
It explained:
Using the FixedDrivesEncryptionType or SystemDrivesEncryptionType policy settings in the BitLocker configuration service provider (CSP) node in mobile device management (MDM) apps might incorrectly show a 65000 error in the "Require Device Encryption" setting for some devices in your environment.
Affected environments are those with the “Enforce drive encryption type on operating system drives” or "Enforce drive encryption on fixed drives" policies set to enabled and selecting either "full encryption" or "used space only". Microsoft Intune is affected by this issue but third-party MDMs might also pe affected. Important: This issue is a reporting issue only and does not affect drive encryption or the reporting of other issues on the device, including other BitLocker issues.
Back then Microsoft had promised a fix and for the meantime, offered a workaround.
A few days ago, Microsoft finally confirmed that the bug had been fixed. The issue was already resolved via January updates, though Microsoft may have been conducting further tests to validate that the fix definitely works before closing the issue.
On its Windows health dashboard website, it writes:
Resolution: This issue was resolved by Windows updates released January 23, 2024 (KB5034203), and later. We recommend you install the latest security update for your device. It contains important improvements and issue resolutions, including this one.
You may know more about the issue on this page on Microsoft"s official website.