THIS METHOD ACTUALLY WORKS
I tried all the posted solutions to get out of s mode and all of them failed. Below is everything I tried.
Fix 1: Start or Restart the Windows Update Service
Fix 2: Clear Microsoft Store Cache WSRESET.EXE
Fix 3: Repair or Reset the Store App
Fix 4: Create a New User Account
Fix 5: System > Recovery > Fix using windows update (might be under different wording)
Fix 6: Waiting 24-48 hrs
I also disabled secure boot and performed all the updates and none of that worked.
What actually worked for me was downloading the windows 11 installation media onto a flash drive and running the upgrade on my PC. This reinstalled all the necessary files needed to remove the machine from s mode. I believe the MFGs are shipping the machines with a bad image causing the errors we are getting when attempting to leave s mode.
Once the "upgrade" completed I was able to exit s mode as easily as Microsoft said it would be.
Please check your event logs you should see errors pertaining to a licensing error this also disappeared once I performed the upgrade.