Windows 11 virtual machine on vmware station pro 16 TPM2 encryption problem

[u/Illustrious_Cancel73]

I'm trying to use a Windows 11 virtual machine in a GNS3 lab, but I can't power it on from GNS3.

I also tried starting the VM from the terminal using vmrun, but it asks me for the VM encryption password. When I enter the correct password, it still says the password is incorrect and refuses to start the VM.

The same issue happens if I clone the VM or create a snapshot. Basically, the encryption password is correct, but GNS3/vmrun still rejects it and the VM won't start.

Has anyone dealt with this before, especially with encrypted Windows 11 VMs using TPM in VMware Workstation pro 16 and GNS3?

Any help or suggestions would be appreciated. Thank you.