To enable Dahua stream encryption, and before adding a camera to DVMS, stream encryption should be enabled in the camera web UI:
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Go to device settings
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Select "System."
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Go to the "Security" or "Safety" subgroup (the name may differ for different devices).
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In the settings dialogue, select the System Service tab
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Enable the Audio and Video Transmission Encryption checkbox.
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Then, when you add a camera with supported and enabled encryption to DVMS, the driver automatically detects this stream and will add "AES-256 Encrypted" transport to System Manager -> Camera Settings -> Transport Options. An encrypted stream will be used by default transport.