To resolve the error go to Network Connection and right click on the VPN connection then click on properties:
Go to Security tab and change the Data encryption to Maximum strength encryption:
Click OK and try again.
Error 741: The local computer does not support the required data encryption type
Posted: January 24, 2016 in VPNComments
Hikmatune 
awesome !!!!! i had been struggling to get a dial up VPN connected on win 10 and looked at few blogs but none helped. this worked like a charm.
for whoever may read this: i had a dial up VPN which connected fine on win 7 but not from win 10. I enabled CHAP and then set the encryption here as shown, now able to connect from win 10 too.
Thanks. That worked. It’s strange how it used to work on the optional encryption method, but today was rejected. Either way, your fix made it work. Thanks.