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Based on lab tests and this article https://techcommunity.microsoft.com/blog/windows-itpro-blog/personal-data-encryption-folder-protection-now-available/4358947

Prerequisites and recommendations for Personal Data Encryption
To enable Personal Data Encryption folder protection, ensure these three prerequisites are met:

The device runs Windows 11 Enterprise (version 24H2 or later).
The device is Microsoft Entra or Microsoft Entra hybrid joined.
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florinbelea authored Jan 7, 2025
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Expand Up @@ -25,7 +25,7 @@ Unlike BitLocker that releases data encryption keys at boot, Personal Data Encry
To use Personal Data Encryption, the following prerequisites must be met:

- Windows 11, version 22H2 and later
- The devices must be [Microsoft Entra joined][AAD-1]. Domain-joined and Microsoft Entra hybrid joined devices aren't supported
- The devices must be [Microsoft Entra joined][AAD-1]. Domain-joined devices aren't supported
- Users must sign in using [Windows Hello for Business](../../../identity-protection/hello-for-business/index.md)

> [!IMPORTANT]
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