It is indeed a technical reason:  PDS and PDSE datasets cannot be
Extended-Format.  Pervasive Encryption requires Extended-Format.  The
restrictions on Extended-Format have been problematic for the past decade,
so presumably not easy to fix.  A few other dataset types are also affected
(such as Direct).
Your problem is more with the use of HLQ to designate Pervasive Encryption,
that is maybe much easier to fix (at a guess).

On Sun, Jan 14, 2024 at 3:29 AM Steve Estle <sest...@gmail.com> wrote:

> Everyone,
>
> Our team is knee deep into pervasive encryption rollout on ZOS 2.5 and
> despite the fact such functionality has been out for years by IBM to do
> this, it is quite surprising how many software vendors when you contact
> them they have no clue what you're talking about - that is a complete aside
> - I'm not going to name vendors here but if you want some examples you can
> contact me offline.
>
> My true reason for composing this is that we've discovered the inability
> to encrypt load libraries - even in PDSE format.  I've yet to get a
> straight answer from IBM on why this is?...   Is this a "giant" technical
> hurdle for IBM?  Or is it just cause there hasn't been anyone who raised
> the need yet?  If the latter does this capability interest others here if I
> were to raise as an IBM idea - would you vote for it?
>
> I know this seems innocuous, but we'd like to encrypt as much as possible
> in our environment and due to Top Secret deficiencies we have to encrypt at
> high level qualifier level (HLQ) (all or nothing under each HLQ
> unfortunately).  Given we have load module libraries under many differ
> HLQ's this is posing difficulties in moving forward with our rollout when
> an HLQ does have one or more load module libraries as part of that HLQ.
> You can only imagine the pain of renaming a load library given all the JCL,
> etc that is referencing that library name.
>
> Also, while encrypting load module libraries might seem a little far
> fetched, there are of course many malicious viruses that have been launched
> by injecting code into a suspecting piece of code.
>
> So two questions:
>
> 1. Why has IBM not already provided such functionality - can anyone speak
> to the technical hurdles to provide?
> 2. If I were to submit an IBM idea, can I count on this community for some
> backing here to help in upvoting such an idea submission?
>
> Thanks for your indulgence,
>
> Steve Estle
> sest...@gmail.com
> Peraton systems programmer
>
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