There is a conflicting setting for recovery options (Removeable Device)

Greetings All,
We are so close to having MBAM fully working.  In what I hope to be the last post on MBAM issues, I am working to resolve an issue with removable devices and enforced encryption.  As it stands the OS drive is fully encrypting automatically as it
should without issue, and the system is reporting back to MABM correctly.  When it comes to removable devices, the answer is a little different.  You insert a USB thumb drive and Windows 7 correctly makes the device read-only and offers to encrypt
it for you to allow full access.  But if tell it to perform the encryption, you get the following error.
There are conflicting settings for recovery options.  When a recovery password is required, backup to active directory should be turned on or the user should be required to save the recovery password. 
As it stands, I do not have backup into AD turned on as I want info backed up to MBAM.  But in testing I did turn on the option to have it backup to AD for remove devices only and had the same result.
I am also including a link (to large to put in post) to a copy of my GPO for MBAM (properly sanitized) for review and would appreciate any thoughts or insight. 
MBAM GPO Settings

When you makes changes to the MBAM policies, it will automatically makes changes to the equivalent bitlocker policies (In-built). I am guessing that the MBAM policy settings which you have defined for Removable drives has not been reflected to the bitlocker
policies.
As in the GPO, you can see if you have made changes to settings of the OS Drives (Windows Components/MDOP MBAM (BitLocker Management)/Operating System), it has made
equivalent changes to bitlocker policies (Windows Components/BitLocker Drive Encryption/Operating System Drive). Same
should happen for the removable drives also.
I would rather suggest to delete the MBAM GPO settings for the removable drives and then again define the settings and look for the changes in the bitlocker policies.
Let us know the result.
Also you don't have to define this particular GPO settings:
Require additional authentication at startup (Windows Server
2008 and Windows
Vista)
Regards, "Gaurav Ranjan" =========== NOTE: Mark as Answer and Vote as Helpful if it helps =======

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