Dell Data Security Server 10.0
Dell Encryption Enterprise Client 10.3.0

If laptop is on domain network or VPN, there is no issue.

Once laptop is removed from the domain, it is unable to unlock the screen. Cached credentials can be used for initial login away from the domain.  However, once the screensaver lock kicks in, you can only unlock if on the domain network.  It does not matter if you are offline or connected to another network. For example: Laptop is in airplane mode with no network. Power on and login with cached domain credential. Let laptop sit until screensaver timeout lock kicks in. You are now unable to unlock the screen until you connect to the domain or force reboot. 

This only started happening with the v10 client. If we use v8, there is no issue. We can unlock just fine away from the domain.  

We can’t sign you with this credential because your domain isn’t available. Make sure your device is connected to your organization’s network and try again. If you previously signed in on this device with another credential, you can sign in with that credential.