This shouldn’t matter to the OS.
I’ve seen this on my phone, too. TWRP would be able to access data later when I set up my screenlock method again in the OS’s initial setup, which would then be the decryption password TWRP needs to access data.
Internal Storage is just a directory in data, so that comes with it.
Boot into the stock recovery and do a factory reset from there …
Else …
Which command did you run exactly?