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Hi @Raptor2213
Welcome to Microsoft Q&A forum
First, could you run the following in an elevated Command Prompt to confirm whether WinRE is disabled or registered elsewhere?
reagentc /info
For a clean installation, the disk layout should be prepared with separate EFI, MSR, ReFS Windows, and NTFS recovery partitions. WinRE should be placed on its own recovery partition, not on the ReFS volume.
For the current installation, the method requires shrinking the Windows partition to create unallocated space. Since ReFS cannot currently be shrunk using the supported Windows tools, there is no supported way to add the recovery partition unless unallocated space already exists. Backing up the installation and repartitioning the drive may therefore be necessary.
Regarding the final 26H1 release, I do not see the confirmation whether ReFS system-drive support or automatic recovery-partition creation will be improved. Windows Server handling this differently does not necessarily mean Windows 11 will behave the same way.
Since you are testing a beta build, I would also report this through Feedback Hub (Win+F). For now, NTFS remains the safer choice for the Windows partition if you need reliable WinRE support.
Thank you for your time and understanding. Hope you have a good day