Hello Rex,
To answer your primary question directly: Unfortunately, no, you cannot use Safe Mode or System Restore to bypass the BitLocker recovery screen. BitLocker is a pre-boot security feature, which means it encrypts the entire drive, and that drive must be unlocked before Windows, Safe Mode, or any recovery environment can even start.
The power surge likely caused a change in the hardware or boot configuration, which the system's security chip (TPM) correctly detected as a potential security event, forcing the recovery key prompt as a safety measure. You are correct that BitLocker (or "Device Encryption") often enables automatically during the initial PC setup, especially when a Microsoft 365 account is linked.
Since you have already checked all the correct admin portals (Azure, Intune, Entra), there is one other primary location the key may be. The key is often saved to the personal Microsoft Account (MSA) of the very first user who set up that computer.
Please have that employee log in to their personal Microsoft account recovery page here: https://account.microsoft.com/devices/recoverykey
If the key is not found there, or on a USB key or printout from the initial setup, the data on the drive is, by design, unrecoverable. The only solution at that point would be to reinstall Windows on that computer.
The very good news is that you mentioned using OneDrive. If OneDrive was syncing correctly, all of your user's important files from their Desktop, Documents, and Pictures folders should be safe in the cloud and will be restored after the computer is reset and they log back in.
If this answer helped clarify the situation and provided the correct next steps, I'd appreciate it if you could hit "Accept Answer"! It really helps other community members find solutions.