Please add –debug to the command and post the output for a better chance of help
In the meantime I can tell you what works for me.
The source dataset is encrypted and subsequent replication works.
I have granted the user the necessary privileged for zfs operation instead of suing root for syncing.
attention the destination dataset must not exist on remote (first replication)
zfs allow rootdataset/subdataset
---- Permissions on rootdataset/subdataset ----------------------
Local+Descendent permissions:
user user compression,create,destroy,mount,mountpoint,receive,rollback,sync
zfs allow root_dataset
---- Permissions on root_dataset --------------------------------------------
Local+Descendent permissions:
user user destroy,hold,mount,send,snapshot,sync```