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ERROR: "User encryption settings in the VM model are not supported. Please upgrade Azure Disk Encryption extension version and clear encryption settings in the VM model."

Question
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We have many ARM VM's where the OS and Data disks are not encrypted. While attempting to resolve this, I'm running into an error. I created a new 'test' VM (Server 2016)... here is the error message.
Set-AzureRmVMDiskEncryptionExtension : User encryption settings in the VM model are not supported. Please upgrade Azure Disk
Encryption extension version and clear encryption settings in the VM model.
ErrorCode: NotSupported
ErrorMessage: User encryption settings in the VM model are not supported. Please upgrade Azure Disk Encryption extension version
and clear encryption settings in the VM model.
StatusCode: 409
ReasonPhrase: Conflict
OperationID : 922ad57b-af01-43b7-ab24-c07f1947cc9ePlease help!
Wednesday, July 11, 2018 4:55 PM
All replies
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If you haven’t referred, refer the below troubleshooting documentation and let us know if you need any further assistance.
- Proposed as answer by vikranth s Wednesday, July 11, 2018 6:29 PM
Wednesday, July 11, 2018 6:28 PM -
Checking in to see if the above response helped to answer your query. Let us know if there are still any additional issues we can help with.
- Edited by vikranth s Thursday, July 12, 2018 7:01 PM
Thursday, July 12, 2018 7:01 PM -
Noticed this issue when trying to encrypt using Azure AD App, the solution is just to omit the AzureAD ClientID which is optional in the Azure CLI Command "az vm encryption enable..."
Hope this helps.
Saturday, November 3, 2018 2:10 PM -
I am still having this issue, i uninstalled the Azure Disk Encryption Extension and receive this error when trying to reinstall. I noticed the machines I Have working are version 1.* and the broken ones had 2.*
How can I switch them to 1.*?
Thanks!
Wednesday, January 9, 2019 8:49 PM -
Just for Clarification: Have you referred to the Azure Disk Encryption troubleshooting guide
Please share the screen shot of the error message or error code if the issue still persist?
Additional information: Learn more info How to Set-AzureRmVMDiskEncryptionExtension
Note: Azure Disk Encryption requires that your key vault and VMs reside in the same Azure region and subscription. Configuring the resources in separate regions causes a failure in enabling the Azure Disk Encryption feature.
AzureRmVMDiskEncryptionExtension cmdlet can be used to encrypt managed disks by specifying the -skipVmBackup parameter. The Set-AzureRmVMDiskEncryptionExtension command will fail against managed disk based VMs until a backup has been made and this parameter has been specified.
The suggestions mentioned in this articlewill help you in this scenario.
Additional information: For more information you may also refer to the suggestion mentioned in here
Kindly let us know if the above helps or you need further assistance on this issue.- Proposed as answer by SumanthMarigowda-MSFTMicrosoft employee Friday, January 11, 2019 6:26 AM
- Edited by SumanthMarigowda-MSFTMicrosoft employee Friday, January 11, 2019 10:56 AM
Thursday, January 10, 2019 9:36 AM