What type of virtualization attack can be prevented by encrypting storage volumes when they are created?

Encryption prevents resource reuse attacks from occurring because the data will not be accessible to attackers after resources are released and reallocated to third parties. VM escape attacks target the underlying VM infrastructure and could still occur if it was vulnerable. Pass-the-hash attacks are used against authentication systems when a hash can be captured and sent to validate a session, and birthday attacks leverage the likelihood of finding a valid collision more quickly by guessing than by moving linearly through a solution set for a hash.