When attempting to enable Encryption Mode on a host using an external Key Provider, the operation fails with a QLC_ERR_VALUE_MISSING error.
In the vCenter logs you can see this error:
[Timestamp] info vpxd[...] The Vecs string entry 'password-<UUID>/<kms1.example.com>' does not exist in VECS
[Timestamp] error vpxd[...] Failed to create key on KMS <IP>:5696 - Err:QLC_ERR_VALUE_MISSING Password
[Timestamp] info vpxd[...] The Vecs string entry 'password-<UUID>/<kms2.example.com>' does not exist in VECS
[Timestamp] error vpxd[...] Failed to create key on KMS <IP>:5696 - Err:QLC_ERR_VALUE_MISSING Password
[Timestamp] warning vpxd[...] Failed to generate key on key provider <UUID>, error 7:
--> Reason:
--> Failed to generate key on KMS <IP1>: QLC_ERR_VALUE_MISSING
--> Failed to generate key on KMS <IP2>: QLC_ERR_VALUE_MISSING
--> Custom attributes: (null)
The password for the Key Provider is either missing or incorrect in the VECS Store, which prevents the vCenter from authenticating with the KMS.
Log in to the vCenter Server.
Navigate to:vCenter > Configure > Security > Key Providers
Edit the affected Key Provider's settings.
Re-enter and save the correct password.