reset encrypted data

If you do not remember your encrypted backup password, I can understand.

If you do not remember having created an encrypted backup, I can understand this also. (This is not true in your case)

This means the iCloud Key chain was checked while creating the encrypted backup because by default it is checked.

Look for it in the iCloud Keychain.

Did you un-check the keychain while creating the encrypted password (By default it is checked) See the pic hereunder.

If you had un-checked then the only option that you have is, keep trying various passwords as there is no limit on the number of attempts.

You may have forgotten that you had entered a password. --> About encrypted backups on your iPhone, iPad, or iPod touch ...

This guide should help:

https://support.apple.com/en-us/HT205220

It would be better if you can please re-post with a screenshot, in order to understand the phenomenon better. Images / pictures speak louder than words. Do not provide any personal credentials, such as email id, apple id, IMEI number, Serial Number, Phone number, Order ID, if you are sharing a map ensure your location is not identifiable. Etc.