I quote that exact part of the documentation in the post. I also talk about the difference between "Device encryption" and "BitLocker Device Encryption"
My argument isn't that this isn't documented. It's that it is a bit counterintuitive.
My points are:
1) It would be best if Microsoft just asked if you wanted encryption if you create a local account. This is what Apple does in this situation. I imagine a large portion of the people who are creating local accounts on Windows 11 Home are the sort that want to manage their own keys.
2) If you are in that set of people, you should double check your setting if you never thought about it before, because it's easy to miss.