Hi Anjali, I am John J.D., a fellow Microsoft user like you.
I understand you're looking for ways to secure your folder, and I'm here to provide information as a fellow Microsoft user. Unfortunately, Windows does not provide any built-in option to lock a folder with password, but you can encrypt it with Bitlocker or use OneDrive Personal Vault.
You mentioned that you tried enabling and disabling encryption. I believe that relates to BitLocker. Can you provide more information about what exactly is grayed out and if this issue is happening with all items saved in that folder?
About OneDrive Personal Vault, you can learn more about protecting your files with OneDrive Personal Vault here:
"Protect your OneDrive files in Personal Vault" https://support.microsoft.com/en-us/office/prot...
Also, here are some articles that suggest alternatives for protecting your folders:
"How to protect folder with password on Windows 11" https://www.windowscentral.com/software-apps/wi...
"How to Lock a Folder on Windows 11" https://www.groovypost.com/howto/how-to-lock-a-...
Should you need further information please let me know.
John J.D.
Note: This is a non-Microsoft website. The page appears to be providing accurate, safe information. Watch out for ads on the site that may advertise products frequently classified as a PUP (Potentially Unwanted Products). Thoroughly research any product advertised on the site before you decide to download and install it.