I am not talking about snapshots. I am not talking about deleting VMs.

If the VM virtual disk is not preallocated, the actual storage space occupied can be smaller. Example, VM OS sees 300GB (virtual) disk but the VMDKs occupies on 90GB on the host. On Workstation Pro there are functions to defrag and compress the virtual disk. Going back to the example, the compress might make it occupy 85GB instead of the previous 90GB. But generally this compress works with punching zeroes into the virtual disk (such as using sdelete in Windows or dd a file with /dev/zero on Linux) from within the VM before doing the compress.

Assuming you punch zeroes into the virtual disk inside the VM, the encrypted VMDKs on the host by definition would mean the contiguous zeroes would also be encrypted (which will make it non-zero), and thus compression may not work. It might even get into a situation that it would grow larger than 300GB in the example assuming the encryption avoids reusing host storage space to avoid showing a pattern in the encryption.

As I said, I haven't tried using non-preallocated virtual disk with encrypted VMs.