Turn off startup authentication

I have few devices in my network asking for startup authentication passwords even I have turned "startup authentication" is OFF from the policy.

I created a new policy and added these devices but they are still asking for the startup password.

I checked the End point agent and navigated to Endpoint Self Help and checked last time policy received was the date of new policy creation

Then I launched Sophos Diagnostics Utility and collected data

Restarted the device encryption service and restarted computer

No difference

When I check the TPM management console, it says "compatible TPM can not be found"
Then I read this article

https://support.sophos.com/support/s/article/KB-000036611?language=en_US&utm_campaign=Encryption&utm_medium=EndpointSelfHelp&utm_source=Product

The idea I got is, when a device does not have a TPM, the the authentication falls back to the next level which is the startup password.

Appreciate if someone can help/clarify

Thank you :)