I think it is base-64 encoded.
If you want te decode it using powershell...
Hey jburen - thanks for the answer but this is incorrect.
within vmware (unsure if its esxi or vcenter), when templates are used to deploy a VM, they use c:\sysprep\sysprep.xml along with the PE sysprepdecrypter.exe to execute build steps on boot.
This PE performs the decryption of the file. It cannot be run from windows as it is a boot utility.
I am hoping to find data on how this enc/dec process takes place so I can hopefully recover a lost admin password.
Oh ok. I thought it was the Windows sysprep file. But learning something new everyday ;-)