Why This Happens
The monitor Azure Virtual Machines | Encryption at host is enabled checks specifically for “Encryption at host”.
Even if other forms of encryption are enabled, the monitor will show as non-compliant if Encryption at host is not turned on.
This setting ensures data is encrypted in transit between the host and storage.
What You Need to Do
Step 1: Enable Encryption at Host
1. Log in to your Azure Virtual Machine Portal
2. Navigate to Virtual Machines
3. Select your VM, then go to the Disks section
4. Enable Encryption at host
Tip: If enabling Encryption at host results in an error like the one shown below, follow this Microsoft guide for step-by-step instructions to resolve it.
