Police in Lithang pay frequent unannounced visits to Tibetan homes to search for photos of the exiled spiritual leader.
Gonpo Tenzin was jailed for singing songs describing the hardships of life under Chinese rule.
The destruction follows similar campaigns carried out along the lake in the last several years.
The move will end a year's stay in the US, where he has undergone medical exams, the senior Tibetan religious figure says.
Authorities' refusal to issue the licenses inconveniences rural Tibetans who must travel long distances through remote areas.
All under 18 must return to their government-run schools, Chinese authorities in Sichuan's Dzachuka region say.
They help move families to higher ground and rescue what they can of their household goods and belongings.
Meanwhile, a delegation sent afterward to appeal to provincial authorities for help has not returned, a local source says.
Novices aged 15 and younger must be enrolled instead in government-run schools, authorities say.
Many observe the day in private, or hold picnics in the countryside away from public view, sources say.
The Tibetan spiritual leader, who fled into exile in India in 1959 to escape Chinese rule, turns 83 on Friday.
They are taken into custody amid a province-wide crackdown on 'separatist influence,' a local source says.
Activists warn that the move will leave a power vacuum in international human rights issues that China will fill on its own terms.
Heavy fines are threatened for those refusing to take part, local sources say.
Dorjee Gyantsan had gathered information on refugees' names and political views and will now serve 22 months in jail.
No explanation is given for Lobsang Tenzin's early release from a 10-year prison term for 'aiding and abetting' a self-immolation protest.
Pema Gyatso, a student at Lanzhou's Northwest University for Nationalities, had previously been warned that his writings were politically sensitive.