Unable to enable VM encryption on the VM failing with error "License not available to perform the operation"

Products

• VMware vSphere ESXi

Issue/Introduction

• When attempting to enable VM encryption, the process fails with the following error message: 
  • License not available to perform the operation. The vSphere 8 Standard license for "Host" hostname.example.com does not include "vSphere VM Encryption". Upgrade the license
• You can configure Key provider in the vCenter and assign vTPM on the VM. However it will fail to Power on the VM with same error message. 

Environment

• VMware vSphere ESXi 7.X
• VMware vSphere ESXi 8.X

Cause

• The error occurs because the vSphere VM Encryption feature is not available with the vSphere Standard license. This feature is only supported with the vSphere Enterprise Plus license.

Resolution

• Please upgrade your vSphere ESXi license to Enterprise Plus to enable vSphere VM Encryption feature.

Additional Information

VMware vSphere Product Line Comparison