Thanks for your help anyweb. This ended up highlighting the root cause and fixing my issue:
Modified the registry key per instructions:
alternatively try this, open regedit and change the following reg key value.
The value should be changed to 0, then wait for the value to change back to 1. It will change to 2 for a while. You can amonitor the srsrp.log while you wait
Once modified I then found these errors in the srsrp.log:
System.Web.Services.Protocols.SoapException: An error occurred within the report server database. This may be due to a connection failure, timeout or low disk condition within the database. ---> Microsoft.ReportingServices.Diagnostics.Utilities.ReportServerStorageException: An error occurred within the report server database. This may be due to a connection failure, timeout or low disk condition within the database. ---> System.Data.SqlClient.SqlException: The transaction log for database 'ReportServer' is full due to 'LOG_BACKUP'.~ at Microsoft.ReportingServices.Library.ReportingService2005Impl.SetProperties(String Item, Property Properties, Guid batchId)~ at Microsoft.ReportingServices.WebServer.ReportingService2005.SetProperties(String Item, Property Properties)
This is a self contained SCCM with SQL 2014 on the same server. I opened up the ReportServer database -> Properties -> Files. The ReportServer_log autogrowth was set to "By 10 percent, limited to 40MB". We changed this to unlimited and I re-ran the script again and it is now processed correctly. The bitlocker management folder now exists and I am back on path.