The primary benefit of implementing micro-segmentation within a Zero Trust Architecture is that it enhances security by isolating workloads from each other. Micro-segmentation involves dividing the network into smaller, isolated segments, so that even if an attacker gains access to one part of the network, they cannot easily move laterally to other parts. This is crucial in a Zero Trust model, which assumes that threats may exist both inside and outside the network, and security is enforced at a granular level for each workload.

Simplifying network design is not a benefit of micro-segmentation; in fact, it can add complexity due to the increased number of network segments. Increased network performance is not a primary outcome of micro-segmentation, which may introduce overhead. Reducing the need for encryption is incorrect because micro-segmentation doesn't eliminate the need for encryption; it works alongside encryption to provide better security.