Enabling Encryption in VM backup job (non-Virtual Dashboard)
In order to implement Encryption in a VM (Virtual Machine) backup job, the VM backup job would be required to have been originally created via the "Backup" tab. You will open that backup job via the "Backup" tab (alternatively you can via the Schedule tab locate the job, right-click on it, and choose "Modify Job"), then click "Open Job" and locate that backup job and select it from the list, once the backup job is open then click the Settings button on the bottom right of the screen. There you will find an Encryption tab to click on. The Online Help topic for how to do this is at the web link here:
Backup Job Encryption - Topic in NovaBACKUP Manual
After enabling Encryption in your job make sure to then save the job. The next time the job runs it will be encrypted. In order to restore a VM from that backup set you will then utilize the Restore tab to locate that backup set by backup job name and date completed, and then choose which VM to restore completely. When you go to restore that VM from the backup set via the Restore tab you will be prompted for the encryption key passphrase. Here is a video guide on how to utilize the Restore tab/function.
Please note that VM backup jobs that were originally created in the Virtual Dashboard function, which appears in the Home tab screen as "Virtual Dashboard", have no way of enabling or disabling Encryption in the backup job created there. It is only the File Backup jobs that can have Encryption enabled, and File Backup jobs do support Hyper-V and VMware backup but by creating your VM backup job in the "Backup" tab instead of the "Virtual Dashboard" you lose the ability to do granular restore of files inside the VM backup to restore individual files from the backup set. The Virtual Dashboard jobs have that functionality and the "file backup" jobs do not.