This is correct Steven_Caldwell. The “hardware encryption” is on by default and cannot be turned off nor can you find the encryption key. So if the circuit board in the enclosure fails you lose the encryption key and the likelihood of being able to recover your data. Removing the drives and placing them in a working enclosure of the same model will not work either.
I just found out about this issue an hour ago after owning my my book duo for 2 months. I can’t return it now and I am worried that I can loose my data, which defeats the purpose of a RAID 1 setup. I would submit a support case on (https://westerndigital.secure.force.com/ind/id_home) and tell them your aggravation with this and maybe if we make enough noise they will solve the issue. A simple firmware update can solve this.
Also, below is another thread about the issue
