Problem

• Host connected to KES Cloud
• Disk encryption disabled in profile
• Encryption error in host properties

Workaround

Try to create a new security profile (Create a new one, do not copy one of the current profiles) - do not modify the encryption settings in it (leave it in the disabled status), and assign affected device to it. This steps should help to fix the problem.

Update:

In case you encounter this with server OS, it will be fixed in KES Cloud release 24.9.

Another possible cause on Windows Server OS

Try to add BitLocker windows feature to all affected devices via Server Manager > Manage > Add Roles and Features. On Features section choose BitLocker Drive Encryption. Wait for several minutes. Status will become 'OK'.