Please uninstall the AxCrypt 1.x app, Whether you had installed both the versions(1.x and 2.x) of AxCrypt app in your pc.
Most often, this error occurs because the file is not produced by AxCrypt. It can also happen when users mistakenly rename non-AxCrypt files to end with .axx, in which case renaming back to it’s appropriate extension will fix the issue since the file was never encrypted in the first place in this scenario.
Another scenario is that it is left-over after previous decryption was interrupted at the stage where the original is overwritten. The most common reason for this happening is that the file was damaged because of early removal of a USB drive, or a disconnected network drive.
I am sorry to say, If the file is actually damaged to this extent, no, it can’t be fixed. The data is just not there to decrypt it.
But we have a feature called Try Broken File. You can try to decrypt the corrupted AxCrypt encrypted files by navigating the menu File | Options | enable Debug from the AxCrypt app.
Now you are able to see the Debug the menu in the AxCrypt app. From the debug menu you have to choose Try Broken File menu option.
Now you will be prompted for file selection. Select the corrupted encrypted file and then AxCrypt will try to decrypt the file. If successfully decrypted, then you are able to see the decrypted file in the file location. Otherwise, AxCrypt can’t decrypt the same.