As always, Internet Explorer is getting in the way of progress. Due to a bug that prevents Internet Explorer data from carrying over from Windows 10 to Windows 11, a new hold may prevent you from upgrading your OS until you manually transfer Internet Explorer data to Edge.
Update, 4/5/22 9:51 am Eastern: Microsoft fixed the bug that prevented Internet Explorer data from automatically transferring to Edge during the Windows 11 upgrade. As such, the company has removed the hold that prevented some Windows 10 users from upgrading.
Microsoft manually implemented this compatibility hold to prevent customers from losing browser data. That said, even if you don’t remember using Internet Explorer, you may need to export its data to complete the Windows 11 upgrade.
After upgrading to Windows 11, saved information and data from Internet Explorer 11 (IE11) might not be accessible if you did not accept to import it into Microsoft Edge before the upgrade.
To safeguard your upgrade experience, we have applied a compatibility hold on devices affected by this issue to prevent them from installing or being offered Windows 11.
To get past this compatibility hold, open Edge, click the three-dot menu in the browser’s top-right corner, and select Settings. You should see an option to “Import Browser Data.” Click this option and import your data from Internet Explorer.
Microsoft will remove this hold once it resolves the Internet Explorer bug. Bear in mind that Internet Explorer is discontinued, and the app will automatically redirect users to Microsoft Edge after June 15th of 2022.
Source: Microsoft via BleepingComputer