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Somewhat helpful article on TPM requirement and why
https://www.theverge.com/2021/6/25/22550376/microsoft-windows-11-tpm-chips-requirement-security

TPM 2.0 is officially required, yet still none the wise whether drive encryption is automatic and/or mandatory. As long as it leaves my external drives un-encrypted all is fine. New hardware will come with Windows 11, so of course compatible. I see no reason to upgrade my current working systems, so I'll wait with getting a new laptop until the dust settles after the windows 11 launch.