This question has confused me for quite some time now. I have searched it up online, and the basic answer is: 'Mass is a form of energy. When black holes die they release the amount of energy that they should. Mass is conserved.' But there's a problem with that answer. Energy is conserved, but mass isn't; it's turned into another energy store. From what I've learned in school, the amount of mass in the universe is always the same, and that's conservation of mass. But if mass is just another type of energy and can be transferred into other types of energy, mass is certainly not conserved, and the conservation of mass doesn't exist. It's like saying conservation of kinetic energy. Kinetic energy can be transferred into the electrical or thermal or other energy stores, and although the overall energy in the universe is the same, the amount of kinetic energy has changed? Am I being stupid or is my life a lie?
Conservation of mass is not a fundamental law of nature so the violation of it is not a problem. Mass is just a form of energy, and energy is the quantity that is supposed to be conserved. So since black holes do not violate the conservation of energy the problem you are worried about does not exist.
Energy is conserved, but mass isn't; it's turned into another energy store.
Contrary to some other comments and answers, mass is in fact also locally conserved in modern physics, but it is important to understand what that means since there are some subtleties that cause confusion.
With relativity time and space were unified into a single construct called spacetime. Similarly, energy and momentum were unified into a single construct called the four-momentum, where energy is the timelike part of the four-momentum and momentum is the spacelike part of the four-momentum.
Mass is the norm of the four-momentum: $m^2 c^2 = E^2/c^2-p^2$. Since the relativistic four-momentum is conserved we automatically get the classical laws of conservation of energy, momentum, and mass. Note also, for $p=0$ we recover the famous $E=mc^2$.
So why do people claim that mass is not conserved? It is conserved, but it is not additive. The mass of a system of particles is not equal to the sum of the masses of the system.
For example, in the anhilation of a positron and an electron the four-momentum of the initial particles is $(0.5,0,0,0)+(0.5,0,0,0)=(1,0,0,0)$ where the first component is the energy and the last three components are the x, y, and z components of the momentum, and the units are MeV. After the anhilation if the x axis is aligned with the resulting photons then their four-momentum would be $(0.5,0.5,0,0)+(0.5,-0.5,0,0)=(1,0,0,0)$. I leave it as an exercise to the reader that the mass of both systems are 1 MeV, and that the mass of each photon is 0 MeV, showing that mass is conserved but that the mass of a system is not the sum of the masses of its constituents.
So, back to your question, the statement “Mass is a form of energy. When black holes die they release the amount of energy that they should. Mass is conserved” is correct. They are using the modern understanding of mass as the norm of the four momentum. The conservation of the four momentum implies the conservation of energy, momentum, and mass.