If the troubleshooter is not available on your system or it can’t resolve the issue, you need to clear Clear TPM. It will do the trick for you. Read: How to backup TPM key on Windows 11 ...

To fix the C0090016, TPM has malfunctioned Microsoft 365 Sign-in Error, clear TPM and sign in using a different account. Other than that, follow these suggestions.

Neowin reports that even AMD hasn't had a clear way to eliminate this unwanted bug on Windows 11. The surefire way to avoid the problem is to buy a standalone TPM module.