Problem running the Windows Feature Update Device Readiness Intune Report

We managed to fix it by also applying a Intune Config Profile to enable the following settings:

This allows Windows to send the data required to Intune so it can populate the report.  Please note I have subsequently found out that the Windows update readiness report DOES NOT inspect hardware.  It only looks at software and driver compatibility.  EG I have a device that DOES NOT have a TPM module but is presented as low risk.   See Microsoft's response below:

How Intune Evaluates Device Readiness:

The Device Readiness Report assesses a device’s compatibility for a Windows Feature Update based on:
• Application Compatibility – Checks if installed apps may cause issues after the update.
• Driver Compatibility – Identifies potential conflicts with existing drivers.
• Other Relevant Software – Evaluates additional software components that may affect update success.
 

It assigns a risk score based on these factors to help determine whether the device is likely to experience update-related issues.
 

Limitations: Hardware Compatibility:
While Intune provides hardware details in the device properties section, it does not evaluate hardware readiness based on the manufacturer or system requirements. To check hardware compatibility, you will need to:
1. Review the device’s hardware specifications (e.g., processor, RAM, TPM, Secure Boot, etc.).
2. Compare these specifications with the minimum system requirements for the target Windows version.
 

This manual check ensures that the device meets the necessary prerequisites before attempting an update.