No encryption at rest?

Hi there. I was thrilled to be able to migrate from Google Drive quite easily, but then I noticed this and it does not look good.

EDIT: Or does this mean that files are not encrypted with my own key, that would have been kind of expected.

I checked out some Nextcloud forums, looks like the end-user UI has had a bug resulting in this information being wrong in the UI.

It would be great to get some clarification on this.