I believe I found a fix for this here
Editing the registry to directly enable Windows Hello seems to work. I did not do the 3rd entry as I still want our users to have to authenticate before completing the setup. As one user on that thread notes:
I found these two registry entries were enough in our case REG add "HKLM\Software\Policies\Microsoft\PassportForWork" /v UsePassportForWork /t REG_DWORD /d 1 /f REG add "HKLM\Software\Policies\Microsoft\PassportForWork" /v Enabled /t REG_DWORD /d 1 /f