Turning on a hardware-based encryption solution such as a Trusted Platform Module (TPM) with BitLocker ensures optimal protection by leveraging the TPM's security capabilities along with BitLocker's encryption strength, rendering the data on the laptop inaccessible if it falls into the wrong hands without the necessary authentication. While enabling software-based encryption and BIOS/UEFI passwords can enhance security, they do not offer the same level of integrated protection as TPM with BitLocker, which is specifically designed for scenarios where high-level security is paramount. Encrypting personal files, though useful, would leave other areas of the disk vulnerable which could contain temporary or cached files with sensitive data.