Users should be given a choice and clearly and concisely explain the consequences of choosing one or the other. Simple as that.
What it should definitely not happen is to do this behind scenes and store recovery codes on a microsoft account. Why those codes have to be stored on their servers?
A screen should display the recovery codes and instruct the user to print them and keep them in a safe place in case of requiring them. I should be able to recover my data completely offline. End of the story.
I believe users are given an option on Windows setup to encrypt the drive with Bitlocker or not. I've done an install in the last few months and seen it.
They should also be given an option of storing the keys in the cloud service tied to an account. Most would still click yes, but the fact that law enforcement can ask for those keys without your consent is an issue.
Here is a question for you though, you probably have those backup codes for services stored securely somewhere, but does everyone you know?
I don't because I'm not a Windows user since a very long time. See my other comment.
My youngest brother had exactly the described problem in the article just the moment he needed his data the most and called me in panic having no idea as to why his computer randomly decided to ask for recovery codes.