"Key provider is not compatible with the host. Reason: "The host does not support Native Key Provider"" when using Native Key Providers on ESXi 7.0U1 and below

Products

• VMware vSphere ESXi

Issue/Introduction

• The following error may occur when attempting to use Native Key Providers with vCenter 7.0U2 or higher and ESXi 7.0U1 or lower.

Key provider is not compatible with the host. Reason: "The host does not support Native Key Provider"

Environment

• vCenter 7.0U2 or higher
• ESXi 7.0U1 or lower

Cause

Native Key Provider (NKP) was introduced in vCenter and ESX 7.0U2. Consequently, ESXi hosts below 7.0U2 cannot use the NKP because those versions are configured to use the Key Management Server (KMS).

Resolution

To resolve the issue, both vCenter Server and ESXi must be updated to vSphere 7 Update 2 or a later version.

Additional Information

For additional Questions and answers about NKPs see: vSphere Native Key Provider (NKP) Questions & Answers