When encrypting, AgentManager looks for the token passwd_encryption_method in the accommon.ini file to know what method to use. Currently that token is only in the seos.ini file and missing from accommon.ini. At present, there are three options, crypt, md5, and sha1.
Here are the three commands that can be used to set the encryption options. (It creates the token in the accommon.ini file.) You could run only ONE of the command to set the encryption you want.
seini -s PupmAgent.passwd_encryption_method md5 /opt/CA/AccessControlShared/accommon.ini
seini -s PupmAgent.passwd_encryption_method sha1 /opt/CA/AccessControlShared/accommon.ini
seini -s PupmAgent.passwd_encryption_method crypt /opt/CA/AccessControlShared/accommon.ini