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A decade or so later, but besides that: good job. Maybe they combine it with passkeys someday, because you know.. cameras are a thing theese days. Point it towards the keyboard and get the keyphrase.
BitLocker supports turning any USB drive into a key. But I don’t like that it creates a separate hidden partition.
This creates a booby trap for everyone who avoids using a Microsoft account to log on to their computer.

If you use a local account and don't keep a backup of your bitlocker key then you can loose all your files if windows won't boot.

You can't take the drive out and read it with a different computer if you don't have the bitlocker key.

They have probably studied ransomware business model and decided to implement it for their stock owners and to improve migration to the cloud Windows subscription when the time comes.

- happy camper without Microsoft product in his family, unfortunately, still too much Google around, working on it -