Formatting from FAT32 to NTFS

[Klaas]

My Veracrypt drive is formatted as FAT32. I want to convert it to NTFS without loss of data. Windows offers that possibility, using the command prompt with this line: Convert H: /FS:NTFS, with H being the drive letter.

I am a bit concerned because the Veracrypt drive is a virtual drive. Yes, I have my data backed up in case of loss, but is there a reasonable chance that data loss will not happen?

[Enigma2Illusion]

As a test, I created a new 2 GB file container using FAT format during the VeraCrypt create volume process. I copied files into the mounted file container. With the file container mounted and using an administrator command window, I attempted the convert command which failed with the following error:

The type of the file system is FAT32.
Convert cannot run because the volume is in use by another
process.  Convert may run if this volume is dismounted first.
ALL OPENED HANDLES TO THIS VOLUME WOULD THEN BE INVALID.
Would you like to force a dismount on this volume? (Y/N) N
Convert cannot gain exclusive access to the H: drive,
so it cannot convert it now.  Would you like to
schedule it to be converted the next time the
system restarts (Y/N)? N

Hence, you would damage the VeraCrypt volume and lose your data if you dismount the VeraCrypt volume to allow Windows to convert the filesystem of the dismounted VeraCrypt volume.

You will need to decrypt in-place the VeraCrypt volume for partition/disk. After the decryption is completed and you confirm that the data is still accessible, encrypt in-place choosing NTFS format.

For file container, create a new file container using NTFS and mount both old and new to copy the data.

EDIT:
To save time, another option if you are confident of your backup of your data is to create a new VeraCrypt partition/disk using the NTFS format on the existing partition/disk and then copy your data from the backup location into the mounted NTFS VeraCrypt formatted volume.

[Klaas]

Many thanks for your quick reply, and to have such a test for me. I amglad I came here 1st to discuss this because the result would have been a mess if I would have proceeded with the assumption the VC drive would react like a regular drive. Thans a lot !!

[Enigma2Illusion]

You are welcome. I thought of another option that I added to my post above and I will let you decide which option is best for you depending on your level of risk. The safest, but more time consuming method is the first option I provided since the data should still be intact on the decrypted drive with the backup as a fallback recovery solution.

[Klaas]

Sorry for a late answer. I appreciate your help, even coming up with a 2nd option. I'll have to consider them both, and am in fact inclined to think that the 2nd one is the safer one simply because there is no decrypting & recrypting involved, which sounds to me like a prescription for problems.
Anyway, you have done your bit, the ball is in my court.
Thanks once again ;-)