CanReset value flipping on cloud only devices

Hello,

I have a problem with cloud only Windows 11 devices configured with passwordless policy. I have noticed that when you run dsregcmd /status command, CanReset value under User State is flipping between "No" and "DestructiveAndNonDestructive". When it's latter, everything works fine, users can start wizard for facial recognition or make PIN changes under Sign In options in Windows. But when it flips to No, everything is blocked. It seems to happen randomly, you can leave device untouched for few hours and just check dcregcmd and the value will change. CanReset is the only value that changes in the dsregcmd report. 

It happens for different devices located on different networks. Also, I have disabled web gateway completely for one device just for testing but no change. Any suggestions would be welcome.