@Rajesh KATARAKI
Temporary disks are not meant to store persistent data and that data can be lost at anytime if there is a host issue or you stop and start the VM. Please note that encrypt-format-all feature also formats all mounted data disks. You will need to move data off the temporary disk prior to encrypting or re-encrypting.
Hope this helps. Let me know if you have further questions or issues and I will be happy to assist.
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