To resolve this issue, the vCenter administrator must update the Role-Based Access Control (RBAC) settings for the Cohesity service account to satisfy vCenter's security requirements.
Step-by-Step Instructions:
- Log in to the vSphere Client as an Administrator.
- Navigate to Administration > Access Control > Roles.
- Select the custom role currently assigned to the Cohesity service account and click Edit.
- Scroll down the privileges list and expand the Cryptographic operations category.
- Check the boxes to grant the following specific privileges:

- Encrypt New (This is the primary missing permission required to create the new encrypted VM shell)
- Add Disk
- Direct Access
- Click Save or Finish to apply the updated role.
- Retry the Cohesity restoration job. The account will now be able to successfully provision the encrypted VM shell, allocate the encrypted disks, and complete the restoration process.