A virtual machine with SEV-ES enabled will not function if the guest operating system does not support SEV-ES. Supported guests include Photon OS version 3 and later. Other Linux guests with SEV-ES support will also be supported.
Install a supported guest operating system.
For more information: * AMD Secure Encrypted Virtualization-Encrypted State Overview
https://techdocs.broadcom.com/us/en/vmware-cis/vsphere/vsphere/7-0/vsphere-virtual-machine-administration-guide-7-0.html