Data Directory Encryption

Looking for clarification:

I expected the data directory to not show files in the clear when viewing via file manager, yet they are, when encryption is enabled.

Am I wrong to assume that end to end encryption should mean that access to files without a key is impossible?

At this rate, if someone hacks the shared hosting, they would have clear access to any file there. Hoping a setting is just wrong…

These are app settings for encryption:

Server-side encryption

Server-side encryption makes it possible to encrypt files which are uploaded to this server. This comes with limitations like a performance penalty, so enable this only if needed.

Enable server-side encryption

Select default encryption module:

Default encryption module

Default encryption module

Encrypt the home storage
Enabling this option encrypts all files stored on the main storage, otherwise only files on external storage will be encrypted

Ah I see the files are encrypted, even if their names are still in the clear.