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Using vTPM devices and using full VM Encryption are separate features. You are not required to encrypt the virtual machine disk files. Important: Adding a vTPM device requires a Key Provider, and the virtual machine “home” files are encrypted (memory, swap, NVRAM files). Please take care to follow the procedure for your version of vSphere. The procedure for configuring vSphere to support Windows 11, will depend on which version of vSphere you are running. See the documentation links below to configure your respective version of vSphere with an appropriate key provider. (Native Key Provider requires vSphere 7 U2 or later). In vSphere 8 and vSphere 7 this can be a Native Key Provider or an external third party key provider. This is a prerequisite requirement before you can create a new VM with a vTPM device or add a vTPM device to an existing VM. Virtual TPM devices require vSphere to be configured with a Key Provider. Fixed-size virtual disks generally perform better, but the difference is really only noticeable if you are creating a large drive.Configuring vSphere to support Windows 11 If you set the hard drive to dynamically allocated, VirtualBox will start the machine with a relatively small virtual hard drive that will grow as more space is needed (up to the maximum that you set). Next, VirtualBox will ask you if you would like the hard disk to be dynamically allocated or set at a fixed size. When asked what type of hard disk you want to create, just leave this setting at the default, VDI or VirtualBox disk image. Since this is going to be your first virtual machine, you want to select Create a virtual hard disk now. Related: Top Linux Operating Systems You Should Try in a Virtual Machine VirtualBox will then ask you if you want to create a virtual hard disk for your new virtual machine. You should not, however, assign more than half of your system's physical RAM to the virtual machine. If you have a large amount of RAM you may get better performance by raising the amount allocated to your guest system.