Cannot disable enforced Windows Hello for Microsoft Accounts

I need to run a service as my local account, which is also a Microsoft Account. In my settings, I have somehow enabled the option “For improved security, only allow Windows Hello sign-in for Microsoft accounts on this device (Recommended)”. There is a toggle next to it, but when I turn it off and refresh the page, it’s enabled again. I can’t find a group policy that is enforcing it, and it isn’t greyed out like other GP-enforced settings. I tried to manually change the corresponding registry setting, but it was already set to disabled (zero):

[HKEY_LOCAL_MACHINESOFTWAREMicrosoftWindows NTCurrentVersionPasswordLessDevice]
"DevicePasswordLessBuildVersion"=dword:00000000

How can I disable this setting so I can use a password with the Windows service I need to run? Windows 11 Education 23H2 22631.4751