HiDRO release 2.8
The issue here is that the VOLSER is somehow used as a factor in the encryption, or when the new VOLSER is stored on the target it is not encrypted.
Need to specify the NEWLABEL option.
Specify NEWLAB (VOL ORIG) on the DUP.
For more information, see the NEWLABel Option DUPlicate Operation, documented at:
Able to see the label in plain-text on both the input and output volumes. When they did not match, they failed to become active after the server booted.
When they did match (using NEWLABEL), there was no issue which is an indication the (original) VOLSER must be involved in the encryption process.