NC 26 (Docker) enabling E-2-E causes locked unsyncable files

Hi, running the latest docker image of NC (26)
everything is working perfect Server/windows 11 clients 3.7.4/andoid app primary use is for contacts/calendar and file sync, and has no issues.

as a test i thought id give the end-to-end encryption plugin a try, but it appears to not be able to sync new or existing files (if edited)
enabled in the windows client
on windows machine created a new folder, this synced to the server fine
on windows created a new .txt file this synced to the server fine
on windows edited the .txt file, but sync failed,
on nextcloud web i edited the file but it appears locked and i couldn’t delete it
restarted nextcloud, same issues…

removed / disabled end to end to end, and then had to ssh on with sudo rights to delete the files…

it seems as if when using E-2-E that it changes or locks the permission somehow?

is there something else i need to do or is this just normal/broken