An encrypted folder protects what you remember to put in it. Here is the practical difference between add-on encryption and an architecture where everything is sealed by default.
Three private surfaces. Same zero-knowledge architecture.
That design is a real improvement over nothing. It also has structural consequences worth understanding before you rely on it.
Search still works through blind indexes computed on your device. Sharing works through per-recipient key envelopes rather than server-side permissions. Team folders seal a folder key per member and rotate it when someone leaves.
An encrypted folder asks you to be disciplined. An encrypted architecture does not need you to be.
Three private surfaces. Same zero-knowledge architecture.