According to the user guide page 39, the public encryption key is needed only when you use a third-party tool.
- Could you share the exact commands you executed and the messages from the command to understand your situation?
- Could you share the Quartus Prime Software variant (Standard or Pro) and the version number?
encrypt_1735 tool shipped with Quartus can be used to encrypt RTL files such that they can only be decrypted by Quartus synthesis tool
The public key is embedded in this tool.
For example, to encrypt file foo.v to create encrypted file foo_enc.v, run the following command:
encrypt_1735 --quartus --language=verilog --of=foo_enc.v foo.v
You can also encrypt files for simulation (for example, for modelsim or vcs simulators).
To get help on the command line arguments, run ‘encrypt_1735 -h’