The encryption feature has certain limitations.

You must power off a virtual machine before you add or remove encryption or change the encryption password.

The encryption feature supports virtual machines that have virtual hardware version 5.x or later only.

You cannot create a linked clone from an encrypted virtual machine.

If more than one unencrypted virtual machine shares the same virtual disk and you encrypt one of the virtual machines, the virtual disk becomes unusable for the unencrypted virtual machine.

You cannot encrypt a shared or remote virtual machine.

You cannot upload an encrypted virtual machine to a remote server.

You cannot share an encrypted virtual machine.