The second approach, which is popular on phones and tablets, is to use disk encryption transparently, usually with hardware assistance. On boot, the key is automatically filled in by hardware (TPM for BitLocker) when some conditions are met, no passphrase is asked. In this case, the disk encryption employed is not really a "true" encryption [0], instead, it's an extension of operating system's authentication mechanism. BitLocker's sole purpose is to prevent anyone from bypassing the login screen by pulling out the hard drive, rewriting the password, and putting the hard drive back in. It's also why smartphones can be reasonably secure even with a 4-digit PIN.
This authentication exploit bypasses the login screen despite BitLocker, so it's technically a BitLocker bypass, although it doesn't break any crypto.
BitLocker can be configured to use either the first approach or the second approach. The second approach is used on many systems by default. As the exploit has shown, if you have serious security requirements, using the first approach is more secure (but do remember to shut down the computer often).
[0] For example, in case of TPM, the BitLocker key can also be physically extracted on boot using a logic analyzer to monitor the communication between the host and TPM... Nevertheless, if you can put a security coprocessor into the CPU itself, it can be reasonably secure since key extraction is really difficult, some smartphone's encryption (e.g. iPhone) uses this method.