After updating to V11 - "Error occurred while checking server setup" - encryption Module

Nextcloud version (eg, 10.0.2): 11.0.1 (stable)
Operating system and version (eg, Ubuntu 16.04): CentOS Linux release 7.3.1611 (Core)
Apache or nginx version (eg, Apache 2.4.25): Apache/2.4.6
PHP version (eg, 5.6): PHP 7.0.14
Is this the first time you’ve seen this error and can you replicate it?: yes

The issue you are facing:
After updating from Owncloud V10 to V11, the admin interface shows the error “Error occurred while checking server setup”

Now I figured out that if I enable the default encryption module - this goes away. Is this module to be turned on even if I am not using encryption?