An administrator observes the error while performing recovery :
VMware Live Cyber Recovery 7.27.6.0
This is not supported.
VMware Live Cyber Recovery does not support using protection groups for VMs with encrypted VMs.
Document for reference : https://techdocs.broadcom.com/us/en/vmware-cis/live-recovery/live-cyber-recovery/saas/using-vmware-live-cyber-recovery/configure-protection-groups/protection-group-caveats.html