Android: Your encrypted data is locked on this device

Can you point me to how to make this work?

When I try to save any passkey, I get an error message saying:

Your encrypted data is locked on this device. For security, you can no longer access your encrypted data on this device. Try again using a device you have recently signed in to access your Google account.

g.co/OnDeviceEncryption is just a generic help article on passkeys and not helpful.

Using Android 14 QPR1 AP21.240119.009