It's not a bug, it's a feature, looks like.
Also, does not matter what Windows version you have, those BIOS settings are ... well, BIOS settings, not influenced by Windows.
Try setting TPM to Firmware, then in the Firmware PTT or whatever it's called disable everything you can. That way at least TPM is partially disabled.
Probably forced upon by Intel and/or Microsoft, to earn the Windows 11 Compatible logo and such.
Sadly, as Windows 11 is the future, we have to get used to this 😞