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Scenario:
When attempting to use Synchronization from DocuWare Cloud to an on-premise system, I receive the following error;

"Only enterprise installations can use encrypted file cabinets"

The check mark for "Encrypt documents" is on and grayed out in the File Cabinet configuration.

Solution:
This error occurs when the XML for a file cabinet is created in the Cloud (where encryption is enabled by default) and exported to the on-premise system. You will need to alter the file cabinet XML and re-import the file cabinet via the "File Cabinets" plug-in configurations. 

You can edit the XML by right-clicking the XML and opening it with Notepad.

1. Search for "<d2p1:Encryption>" in the XML. You will find the following values

"
<d2p1:Encryption>OnlyDocument</d2p1:Encryption><d2p1:EncryptionSize>_256Bits</d2p1:EncryptionSize>"

2. Change "OnlyDocument" to "None".

3. The next entry is "<d2p1:EncryptionSize>" this should be changed to "_0Bits".

Before:
<d2p1:Encryption>OnlyDocument</d2p1:Encryption><d2p1:EncryptionSize>_256Bits</d2p1:EncryptionSize>


After: 
<d2p1:Encryption>None</d2p1:Encryption><d2p1:EncryptionSize>_0Bits</d2p1:EncryptionSize>


4. Save the XML and re-import the File Cabinet.
5. Restart DocuWare Services.
6. Create a new Synchronization job pointing to the new file cabinet.

KBA is applicable for both Cloud and On-premise Organizations.