You could say that even if the encryption is not perfect, it is better than having no encryption at all. Some not-perfect protection is better than nothing. Well, it leads you to be much more careless because you somehow rely on it. You wrote for example you wouldnât have to care about your data if the admin misses to put the latest updates. If there were a bug fix for the encryption module, your data could be vulnerable and you wouldnât delete it because you think they were properly encrypted.
Suppose you are not fall for this false security. The encryption app adds a lot of code and complexity. Some are perhaps only annoying bugs you can live with. Some had already problems restoring their backup data Howto restore encrypted file into NextCloud, failing upgrades Encryption migration failed (Class not Found) ¡ Issue #2628 ¡ nextcloud/server ¡ GitHub, âŚ
In one setup I was using the encryption app as well (some versions ago). At some point, all problems I had were related to this encryption app. Since it was disabled, no problems. To encrypt my disks and backups, I use other solutions that are more tested and more reliable than this app. I would only use this app again with an enterprise subscription where I know to get support for such problems. Have seen too many users with unusable files due to encryption.