Did you try using the command line to disable Filevault?
sudo fdesetup disable
If Filevault this command does not work, then try adding the " -verbose " option:
sudo fdesetup disable -verbose
Are you by chance running macOS 26.1 Tahoe as noted in the signature? And is "Automatic Login" enabled? I've seen multiple reports that these two things confuse macOS Tahoe since installing Tahoe enables Filevault automatically (not very nice of Apple to change something without informing the user & making sure it doesn't conflict with any allowed configuration options). IIRC, I believe a couple of people in another thread mentioned this worked for them.