Replicating VM (zvol) to another truenas

I am trying to configure replication of a VM to another truenas machine. My original (production) machine is electric eel, while test machine is fangtooth (I feel this is important to note because there appear to be some differences).

My general idea is to replicate production version VM zvol to my test truenas install and have test VM running there. My first step is to replicate zvol to my test system and I have failed on my first step.

I have used following example/tutorial:

I have tried to follow the script and I get this interesting error which I do not understand how to resolve:

In my production truenas - my pools are encrypted (and if I recall this was default option while configuring pools). My pools on my electric eel have “ZFS encryption” widget, but my fangtooth test machine does not. And I do not have this option while creating pool.

Am I right that something changed? And if yes, what exactly (and how to make it work)?

p.s. I also tried to create encrypted dataset, encrypted zvol and many other options but in general I get that I need to create zvol (likely through replication task) but I also get other errors such as: "[EFAULT] Unable to send encrypted dataset ‘*****’ to existing unencrypted or unrelated dataset.