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Can't find encryption.

This is right from HTC (Which I assume you've read already)

Important:
Set a lock screen PIN or password before encrypting your data.
Fully charge the battery and keep HTC Desire 300 connected to the power adapter during encryption. The encryption process takes about an hour.
You cannot undo encryption. If you want to return to an unencrypted phone, you must perform a factory reset.
  1. Go to Settings, and then tap Storage.
  2. Tap Storage encryption.
  3. Tap OK.
  4. Enter the lock screen PIN or password, and tap Next.
  5. Tap OK.

It seems to me that if you already have set the pin for the screen lock, you shouldn't have to enter a pin for encryption, so maybe the pins are interfering. Try removing the screen lock pin and then see if the option shows up under storage.
 
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All I keep seeing is that for the 300 it should be found under Storage. I can't find anything at all for the 400. If this were a widespread problem, i would think i'd see at least a few support questions somewhere, but I'm coming up empty.

Did you buy those phones new? The only other things I could guess were that either the phones were modified, or that depending on where you are, encryption might not be permitted, so it's been disabled. :dontknow:
 
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