A general runtime error occurred. Key provider NKP is not compatible with the host . Reason: "The host does not support Native Key Provider because it is not in a cluster

 Error:


While creating a VM on encrypted datastore as:

A general runtime error occurred. Key provider NKP is not compatible with the host . Reason: "The host does not support Native Key Provider because it is not in a cluster 


Solution:

Move the ESXi host to a cluster and re-try the operation


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