Same here. This happened to me on a similar setup. I used the registry edit workaround and it's been running fine, but I do worry about long-term support. Hope that helps.
Yeah, I had the same problem. My older i7 wasn't on the list either, and a BIOS update actually did unlock the TPM setting for me. Let me know if that works.
+1 You could also try using the official Media Creation Tool to make a bootable USB, as that installer sometimes bypasses checks the in-place upgrade does.