When attempting to execute the [Export OVF Template] action for a virtual machine using the vSphere Client, the task is blocked and the following error message is displayed in a dialog box.
The selected virtual machine cannot be exported because it is encrypted.
VMware vSphere 7.0
VMware vSphere 8.0
This behavior is expected and by design. It is not possible to export an encrypted virtual machine to an OVF template.
Change the virtual machine storage policy to remove encryption before exporting. For detailed instructions, refer to the following documentation.