Work Folders on Windows 7 - Error Sync Stopped Can't Encrypt Files

Hello All-
We are getting ready to roll out Work Folders. It is working all fine on Windows 8.1 devices and am not trying to get it to work on Windows 7 SP1 devices. The Work Folders client for Win7 installs fine and I can configure it, however,
immediately after configuring work folders it displays an error stating that "Sync Stopped. Can't Encrypt Files." There is really no other information that I can find on this error.
Any help would be appreciated!!
Thanks

Digging around a bit more, I found some error msgs in Work Folders Event log:
Event ID 2100
Sync failed. Work Folders path: C:\Users\testuser\Work Folders; Error: (0x80c80314) The Work Folders path has to be encrypted. You might have an application holding the Work Folders folder open or the folder might be compressed. Close Windows Explorer and
any open files or apps, and check the folder Advanced properties to ensure that the folder is not compressed.
and
Event ID 9002
Work Folders detected a sync error. Check partnership status, network connectivity, and disk space.
Again, these errors only occur on Windows 7 SP1 Professional | Enterprise devices. Windows 8.1 devices function as desired.

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Work Folders on Windows 7 - Error Sync Stopped Can't Encrypt Files

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