This issue prevents the successful deployment of modern operating systems that explicitly require Virtual Trusted Platform Module (vTPM) functionality.
VMware vCenter Server
VMware vSphere ESXi
The operation fails due to a lack of mandatory cryptographic privileges assigned to the user or group executing the task. Windows 11 requires a Virtual Trusted Platform Module (vTPM). The creation, registration, or encryption of a VM utilizing a vTPM requires the Cryptographic operations > Register host privilege at the Host System level, alongside standard virtual machine configuration rights.
Assign the following minimum cryptographic privileges to the affected user's role at the vCenter Server or ESXi Host level to support Windows 11 vTPM creation:
Log in to the vSphere Client as an Administrator.
Navigate to Administration > Roles.
Select the role assigned to the affected user and click Edit.
Navigate through the privilege tree and grant the following permissions:
Save the modified role.
Retry the Windows 11 VM creation workflow.
For comprehensive details on vTPM and cryptographic privileges, refer to the following Broadcom TechDocs:
Cryptographic Operations Privileges
Add Virtual Trusted Platform Module to an Existing Virtual Machine
If you need assistance checking the permissions for specific users or groups see Using the "authz-doctor" tool to identify vCenter permission issues