Issue with server side encryption for external storages only

Nextcloud version 17:
Operating system and version official raspbian buster:
Apache or nginx version Apache 2.4.25
PHP version 7.3)

The issue you are facing:

Is this the first time you’ve seen this error? N

Steps to replicate it:

  1. Enable server side encryption
  2. enable default encryption module
  3. Done use the option to also encrypt files on the main storage, only the external storage.
  4. Upload a plain text file to connected external storage.
  5. Login seperately to external storage account, and download the plain text file.
  6. The file comes in actual plain text.

To make sure, i logged out/logged in and checked upload download the plain text file again, but same issue. It doesent matter even if i restart my pi, still getting the plain text files at the external storage account. If it does matter, the external storage is another nextcloud service.

PS. Did not try the option to also encrypt the main storage along with external storage.