v3.12 for macOS (Ventura) Create or copy a file into an encrypted folder. (Ex: test.txt) The file is encrypted. Overwrite that encrypted file with an unencrypted file with the same filename. (Move or copy the unencrypted file test.txt into the same location as the encrypted test.txt.) The result is the overwritten file is unencrypted despite the parent folder being encrypted. Furthermore, the secondary menu options (Create Encrypted Copy) are not present. Is this intended behavior?

Overwritten encrypted file in an encrypted folder is unencrypted

docents_plate0t

v3.12 for macOS (Ventura)

Create or copy a file into an encrypted folder. (Ex: test.txt) The file is encrypted.
Overwrite that encrypted file with an unencrypted file with the same filename. (Move or copy the unencrypted file test.txt into the same location as the encrypted test.txt.)

The result is the overwritten file is unencrypted despite the parent folder being encrypted. Furthermore, the secondary menu options (Create Encrypted Copy) are not present.

Is this intended behavior?