Final answer:
The error is due to incorrect syntax. Use 'enable secret' command for Type 7 encryption.
Step-by-step explanation:
The error that you received after entering the command 'enable password 7 password123' is due to Incorrect syntax. The correct syntax for enabling password encryption with Type 7 encryption is:
enable secret 7 password123
The command 'enable secret' is used to encrypt the password with Type 7 encryption, while 'enable password' is not supported for Type 7 encryption. Additionally, Type 7 encryption is not as secure as other encryption methods, so it is recommended to use stronger encryption methods like Type 5 or Type 9.