Migrating a RHEL 9 or RHEL 8 VM with encrypted disks (LUKs) enabled from VMWare fails at the DiskTransferV2v stage.

~~~
command: blkid '-c' '/dev/null' '-o' 'value' '-s' 'TYPE' '/dev/sda3'
command: blkid returned 0
command: blkid: stdout:
crypto_LUKS
guestfsd: => vflibguestfs: trace: v2v: vfs_type = "crypto_LUKS"
libguestfs: trace: v2v: luks_uuid "/dev/sda3"
s_type (0xc6) took 0.03 secs
guestfsd: <= luks_uuid (0x1fb) request length 56 bytes
commandrvf: stdout=n stderr=y flags=0x0
commandrvf: udevadm --debug settle -E /dev/sda3
SELinux enabled state cached to: disabled
No filesystem is currently mounted on /sys/fs/cgroup.
Failed to determine unit we run in, ignoring: No data available
commandrvf: stdout=y stderr=y flags=0x0
commandrvf: cryptsetup luksUUID /dev/sda3
libguestfs: trace: v2v: luks_uuid = "b0286078-42fe-444e-bd03-62c4b8e523ee"
getline: Inappropriate ioctl for device
virt-v2v-inspector: could not read key from user
libguestfs: trace: v2v: close
~~~

After the failed migration the PVC that was bound to the conversion pod, you are able to create  a VM from this as a workaround.