We have enabled vTPM on the virtual machines and templates as per the manual below,
but the machine catalog creation fails with the error: "Invalid or unsupported virtual machine configuration."

• Creating a VMware catalog:
  • https://docs.citrix.com/en-us/citrix-virtual-apps-desktops/2402-ltsr/install-configure/machine-catalogs-create/create-machine-catalog-vmware
  • Master image input (snapshot) and machine profile input (VMware template) must either be both vTPM enabled or both vTPM disabled. 
    
    

Based on the current reproduction scenario, we have identified that an internal exception is occurring on the hypervisor during the "VmwareVmManager:CopyVmDisk" task.

In the stack trace, there appears to have been a possible issue related to the handling of the keyvaluepair property in the HostSideAdapter, although a definitive root cause has not yet been identified.
Since our internal logs do not indicate any encryption-specific root cause, we recommend further investigation from the hypervisor side, focusing on vCenter and ESXi logs.

• The exception arises during the CopyVmDisk step within the ConsolidateDiskFromVmSnapshot process. A general ManagedMachineGeneralException caused by a VmConfigFault has been identified as the root cause.
  This is a commonly observed behavior on the VMware side, typically related to VM encryption settings or disk configuration.
• As part of the MCS process, when creating clones from a VM template snapshot, VMware APIs such as CopyVmDisk and ConsolidateDiskFromVmSnapshot are called internally.
  If the VM is encrypted, additional permissions and key handling are required.

Since third-party software interference is a likely cause, we recommend contacting Broadcom for further investigation from the hypervisor perspective.
You may be asked to provide the following information:

• vCenter Server log
  • Path: /var/log/vmware/vpxd/vpxd.log

• hostd.log (ESXi host daemon log)
  • Path: /var/log/hostd.log

As one example, there has been a reported case where the Citrix MCS process was blocked by VMware when attempting to copy a virtual machine to new storage.
In that case, the issue was resolved by excluding the master image from Veeam's CDP (Continuous Data Protection) policy.

Machine catalog creation fails with "Invalid or unsupported virtual machine configuration" in an environment where vTPM is enabled.