When creating a Windows 11 VM, you receive the following error:
Receiving general runtime error message. Native key provider is not compatible with host
vCenter Server 7.0.x
vCenter Server 8.0.x
If you leave the default “Use key provider only with TPM protected ESXi hosts" selected when setting up the native key provider but do not have hardware TPM enabled turned on in the BIOS, hosts without TPMs will not participate in Native Key Provider. When you attempt cryptographic operations on a virtual machine on those hosts, they fail.
To resolve this issue:
For more information, see: vSphere Native Key Provider (NKP) Questions & Answers
For information on deploying the native key provider see: Configuring and Managing vSphere Native Key Provider