Guest OS Upgrade from Windows 10 to Windows 11 fails with the error "The PC must support TPM 2.0
".
The Guest OS, in this example, Microsoft Windows 11, requires TPM 2.0 for installation.
In a virtual environment, this requirement can be met using vTPM.
To resolve this issue, follow these steps to configure vSphere Native Key Provider on vSphere.
Note: ESXi host encryption should be enabled. Refer to Activate Host Encryption Mode Explicitly
After configuring the vSphere Native Key Provider on vSphere and adding vTPM on VM continue the Guest OS upgrade.