Make sure your TPM Chip is working on your host machine.
Create a VM in Hyper-V.
Select Generation 2
Check if your VM has external network access
Choose install operating system later
Goto Settings of your VM
Enable TPM and Click Apply.
Install your Operating system now.
If this happens, wait for your VM to start and click on Enhanced Session
Log in with your Intune account
Turn Bitlocker on
Choose your option and click next
Encryption is running. This can take some time to complete.
The error below occurs when a Generation 1 VM is used instead of Generation 2.