I was having this issue too. I read various conflicting things, like work accounts can not be added to the Home edition of Windows 11 etc. But this simply isn't true.
I am the global admin for my tenant. I was getting this exact code. In my case, it was due to having previously used Intune to manage my organization's devices. The "Device Management" in Entra ID in connected to Mobile Device Management features, such as Intune. I downgraded my license after trialing Intune which no longer gave me the entitlement to use Intune features. However, the configuration and access to view some things in Intune was still there.
I went to Intune Admin Center, Dashboard -> Devices | Overview -> Windows Enrollment
Microsoft Intune - Microsoft Intune admin center
And I saw a message stating:
"Automatic MDM enrollment is available only for Microsoft Entra ID Premium subscribers."
...and...
"The Intune app is enabled. Click here to reset the MDM and WIP scopes for Intune to None. It does not delete the Intune app itself. For other MDM apps, please select Delete to remove them from your tenant."
There is a delete button which seems to disassociate Intune with the Device Registration service in Entra. I selected delete, which doesn't delete any Intune Configuration, only the linkage (MDM and WIP scopes), and my problem was solved. Account added successfully, 365 business apps working on my Win11 Home.
Hope this works for some of you.