It is a Gen2 VM.
Thanks, I was talking to someone else about this last night, and something to add, is that the VM has a SQL Database on it, and they were not sure if even just bitlockering the host could cause an issue, much less encrypting the actual VM using a vTPM.
@Ronald Schilf I have read up on a couple ways that people can get around a TPM, from scrapping the surface off the TPM and using a signal analyzer, to linking in to the bus leading out from the chip, since that information isn't encrypted. Given where the server is located, it would have to be the preboot authentication.