A Trusted Platform Module (TPM) provides additional security benefits over software because data stored within it cannot be used on other devices.If you enable this policy setting only devices with a usable TPM provision Microsoft Passport for Work.If you disable this policy setting all devices provision Microsoft Passport for Work using software even if there is a usable TPM.If you do not configure this policy setting all devices provision Microsoft Passport for Work using software if the TPM is non-functional or unavailable.
Use a hardware security device
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HKLM -> SOFTWARE -> Policies -> Microsoft -> PassportForWork!RequireSecurityDevice
Windows Components -> Microsoft Passport for Work