iOS Passcode option disappears after fully managed by Intune

Hey guys,

It happened to a couple of users that after their iPhone enrolled with Intune, the option to change FaceID and Password disappeared completely. I have checked the applied restrictions within the installed profile, there is nothing about disabling the passcode. We only have compliance policy to enforce simple password of more than six digits. These problematic users receive same compliance policy as everyone else.

Has anyone seen this behavior on iPhone?

Thank you.