iCloud Photos is only available on macOS Standard, macOS Extended and APFS formatted volumes

I've been enjoying Big Sur quite a bit however I've continued to experience this issue.

When choosing About this Mac > Storage > Manage > Store in iCloud I get this error message. Obviously my drive is formatted correctly and all of the solutions here and elsewhere do not solve this issue.

Has anyone else encountered this issue and able to fix it? I'm currently pulling all of my photos out of iCloud and basically start from scratch and see if that helps.

Thanks in advance in for any advice.