Updating VMware Workstation Pro 17.5.1 results in all the Virtual Machines show as encrypted, whereas there is no password/ encryption set by the user.
To verify the issue, please check the .vmx file it will show vmx.ecryptionType= "partial" and vtpm.present= "TRUE".
Workstation Pro 17.5.1
To resolve the issue, export the Virtual Machine as OVF using the OVF Tool . Please follow the steps mentioned below to export the Virtual Machine as OVF and import it back into the VMware Workstation as a new Virtual Machine
C:\Program Files (x86)\VMware\VMware Workstation\OVFTool\ovftool.exe" “path to the VM” “path to export the .ovf”
Link to download OVF Tool : https://developer.broadcom.com/tools/open-virtualization-format-ovf-tool/latest