https://bugs.freebsd.org/bugzilla/show_bug.cgi?id=217810

            Bug ID: 217810
           Summary: bhyveloader and zfs encryption fails
           Product: Base System
           Version: 11.0-RELEASE
          Hardware: Any
                OS: Any
            Status: New
          Severity: Affects Only Me
          Priority: ---
         Component: kern
          Assignee: [email protected]
          Reporter: [email protected]

bhyveloader fails if you decide to enable encryption within the installer.

If you select zfs encryption from the partitioning menu and installation and
let it complete. Upon reboot the bhyveloader will fail with "can't load kernel"

All drives are present. 
ZVOL - Sparse is in use
bhyve-vm - as management software

more info:
https://lists.freebsd.org/pipermail/freebsd-virtualization/2017-March/005383.html

If I enable ZFS encryption at install, it breaks with the "can't load kernel" 
If I disable ZFS encryption at install, it starts and works perfectly.

workaround:
turn off ZFS encryption, however this leaves your system unencrypted.

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