@ozsmacdActually it can be even worse,

you have your host system Encrypted which contains an encrypted VM which guest OS is also encrypted.

So 3 layers of encryption. LOL

talking about busyness software it was IMHO a design failure to begin with to bundle virtual disk encryption with TPM encryption.

usually you use a TPM in a machine to encrypt the disk so by design the way VMWare does it most often results in unnececery double encryption.

Also its not a measure of Enterprise-class software to prevent users from configuring their software as they need to, including fringe edge cases.

VMWare should from the get go allow the users to choose what to encrypt and if the user want to use an unencrypted TPM.