Create a wallet as follows:

```sh
$ bitcoin-cli createwallet "watchonly" true
$ bitcoin-cli -rpcwallet=watchonly getwalletinfo
{
   ...
   "private_keys_enabled": false
}
```

The following should fail, but doesn't:

```sh
$ bitcoin-cli -rpcwallet=watchonly encryptwallet 1234
wallet encrypted; The keypool has been flushed and a new HD seed was generated (if you are using HD). You need to make a new backup.
```

It partially fails silently, because it doesn't actually add a seed. But it does ask for a password when calling `dumpwallet`, which doesn't make sense because we currently don't encrypt anything other than private keys.  
change_position = options["changePosition"].get_int();
        if (options.exists("change_type")) {
            if (options.exists("changeAddress")) {
                throw JSONRPCError(RPC_INVALID_PARAMETER, "Cannot specify both changeAddress and address_type options");
            }
            coinControl.m_change_type = pwallet->m_default_change_type;
            if (!ParseOutputType(options["change_type"].get_str(), *coinControl.m_change_type)) {
                throw JSONRPCError(RPC_INVALID_ADDRESS_OR_KEY, strprintf("Unknown change type '%s'", options["change_type"].get_str()));
            }
        }
        if (options.exists("includeWatching"))
            coinControl.fAllowWatchOnly = options["includeWatching"].get_bool();
        if (options.exists("lockUnspents"))
            lockUnspents = options["lockUnspents"].get_bool();
        if (options.exists("feeRate"))
        {
            coinControl.m_feerate = CFeeRate(AmountFromValue(options["feeRate"]));
            coinControl.fOverrideFeeRate = true;
        }
        if (options.exists("subtractFeeFromOutputs"))
            subtractFeeFromOutputs = options["subtractFeeFromOutputs"].get_array();
        if (options.exists("replaceable")) {
            coinControl.m_signal_bip125_rbf = options["replaceable"].get_bool();
        }
        if (options.exists("conf_target")) {
            if (options.exists("feeRate")) {
                throw JSONRPCError(RPC_INVALID_PARAMETER, "Cannot specify both conf_target and feeRate");
            }
            coinControl.m_confirm_target = ParseConfirmTarget(options["conf_target"], pwallet->chain().estimateMaxBlocks());
        }