Group policy error when adding BitLocker password using manage-bde

I am trying to add a password for BitLocker using manage-mde.

manage-bde -protectors -add c: -password

And receive the following error.

ERROR: An error occurred (code 0x8031006a): Group Policy settings do not permit the creation of a password.

The only group policy setting I could find was "Configure use of passwords in operating system drives" in Computer Configuration\Administrative Templates\Windows Components\BitLocker Drive Encryption\Operating System Drives. I changed that setting to "Allow password complexity". I'm still getting the same error.

Any ideas? Thanks for your help as always.

To enable a Bitlocker password to unlock the host OS without TPM, or in your case reset the Bitlocker password you will also need enabled in Group Policy "Require additional authentication at startup"

After you've done this you can set a new Bitlocker Password using manage-bde -protectors -add c: -password or through the Bitlocker GUI.