I have the same issue and want to attempt same solution so I'm trying not to start an entirely new post; I hope that is ok.

problem: virtual machine having vTPM feature and which previously did not prompt for password until VM was moved to new device/laptop.

solution: replacing encrypted virtual machine descriptor with an unencrypted descriptor, for virtual machine having vTPM feature and which previously did not prompt for password until VM was moved to new device/laptop.

I detailed my problem in this reddit post, where I included virtual machine config file, and pictures of my VM directory folder, properties, etc.

Vmware Workstation Player 16 VM asking for encryption password on new laptop; never did on old lapto...

However, my post boils down to 4 questions:

1. When I create the new temporary virtual machine which I will need for its unencrypted descriptor, can I get away with creating a blank VM by choosing the option "I will install the operating system later. The virtual machine will be created with a blank hard disk" OR am I required to use the same IMAGE as used for the original "encrypted" virtual machine? https://imgur.com/2CbzWhe

2. I can't recall the exact size of my "encrypted" virtual machine AND now that its prompting for password, the option "settings" (which contains data about volume size) is greyed out. So instead I right-clicked on the VMDK file and clicked properties and it lists 60.9GB under "size." Is this an accurate way of checking volume size OR is there some other more accurate method? https://imgur.com/kfaFLup

3. Originally on my old laptop, my virtual machine was smaller (I think 30GB or 40GB). Then I increased the size and then added the vTPM feature, although I can't be certain that was the order. In this case, will your solution still work?

4. Here's a directory of my virtual machine folder: https://imgur.com/r9HHbRA