For those interested, here is a workaround:

1. Download the Windows 11 disk image ISO file from Microsoft - https://www.microsoft.com/en-us/software-download/windows11
2. Follow the steps in this article to extract the ISO image and split the install.wim file - https://www.zdnet.com/article/windows-10-installer-files-too-big-for-usb-flash-drive-heres-the-fix/
3. Follow the steps in this article to create a bootable ISO image from the extracted image files - https://www.buildsometech.com/convert-bootable-usb-to-iso-image-file/
4. Run the Dell OS Recovery Tool and choose the "Advanced Recovery" option that lets you select your newly created ISO file
5. Specify GPT as the partition type

Now you have a bootable Dell OS recovery flash drive created by the OS Recovery Tool.

Bill

As an aside, I think it's not good that Dell only provides OS recovery on the same disk (in separate hidden partitions) as installed in the machine and forces customer to create their own recovery media. (This is basically useless if the disk fails.)

Bill, I did exactly what you said and I am facing the same issue.

after run dell recovery it shows me the successful message, then the software asks to remove the pen drive and restart, when I do that it shows me an empty blue screen and after 2 seconds the computer is shutdown.

my notebook is Dell xps 15 2021 

Has this been resolved so that the above steps are no longer needed?  I just purchased three XPS 8940's this last week and am going to want to set up boot recovery media for them once I get them and get them setup.  I noticed there was an update the last couple of months to the media recovery software on my Windows 10 XPS and Inspiron desktops.

Thanks Bill, this seemed to work for me - after much mucking about with Dell support to no avail!
It would be good if you could put some of the commands/links/instructions into the video description though, would be a lot easier just to click, copy/paste

It might be noted that some newer systems do not need a FAT32 formatted USB drive but can use NTFS format for UEFI boot and install.  No need to split the larger install.esd for this process.

On my older systems, I don't make new .iso files, just copy over to the flash drive the split file instead of the large install.esd file.

Hello! how to create recovery with Dell aplication, this manual use clean Windows11 install, this same I can do with media recovery tool

I want use OS Recovery toolt for Inspiron/XPS/Venue and all time have information, problem with connecting to the server.