I'll chime in because I was just having the same issue as you on an iMac Pro that I just received. Out of the box it was running Catalina so I created an admin user and installed Big Sur immediately. I copied the Win10_20H2_v2_English_x64.iso to the desktop, ran Boot Camp Assistant, and got hit with the error you quoted. I deleted and recreated the BC partition a few times but it had no effect. Suspecting a partition map issue (and since I had no data on the iMac yet) I booted to Recovery (Command (⌘)-R) and wiped out the entire partition before reinstalling a fresh, clean copy of Big Sur. After that the problem vanished. Your milage may vary as you likely have data to preserve, but it's worth considering making a backup and starting from a fresh partition. Best of luck!