HTC One M8 Encrypted without password

My girlfriend brought her phone to me and it somehow encrypted itself without her doing anything.

Here's a picture of what the phone says.

I've never seen anything like this happen before and Google didn't have anything.

Edit: Tried to go ahead with the factory reset but it just brought me back to the same screen.

Edit 2: This is the same exact problem except I'm unable to install TWRP because I can't get USB debugging enabled. Advice would be much appreciated, should we bring it to Verizon?