We are working on a resolution and will provide an update in an upcoming release. To mitigate this issue in Microsoft Intune, you can set the “Enforce drive encryption type on operating system drives” or 'Enforce drive encryption on fixed drives' policies to not configured. 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. Microsoft Intune is affected by this issue but third-party MDMs might also pe affected. 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'.
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.