[Bug]: Encryption not ready: Module with ID: OC_DEFAULT_MODULE does not exist.

⚠️ Before submitting, please verify the following: ⚠️

• This is a bug, not a question or a configuration issue.
• This issue is not already reported on Github (I've searched it).
• Nextcloud Server and Desktop Client are up to date. See Server Maintenance and Release Schedule and Desktop Releases for supported versions.
• I agree to follow Nextcloud's Code of Conduct

Bug description

After upgrading to Nextcloud 27, I am getting an error that the OC_DEFAULT_MODULE does not exist. The Default Encryption App is enabled.

occ encryption:status returns:

 - enabled: true
 - defaultModule: OC_DEFAULT_MODULE

The Personal -> Security page reports "Encryption App is enabled, but your keys are not initialized. Please log-out and log-in again. " I have tried logging out and logging back in through the web browser several times but the message has stayed the same and the error persists.

Steps to reproduce

Error occurs when the Desktop Client is attempting to sync, it stops during the first file and so no files are being synced.

Expected behavior

When syncing the files, the files should be synchronised with the server files.

Which files are affected by this bug

nextcloud.exe

Operating system

Windows

Which version of the operating system you are running.

Windows 10/11, Ubuntu 23

Package

Distro package manager

Nextcloud Server version

27.0.2

Nextcloud Desktop Client version

3.9.3

Is this bug present after an update or on a fresh install?

Updated to a major version (ex. 3.3.6 to 3.4.0)

Are you using the Nextcloud Server Encryption module?

Encryption is Enabled

Are you using an external user-backend?

• Default internal user-backend
• LDAP/ Active Directory
• SSO - SAML
• Other

Nextcloud Server logs

No response

Additional info

Create-Debug-Archive-Extra-Logs.zip

Start with the occ encryption:status output and the encryption initialization message on the Personal → Security page, then compare the server 27.0.2 and Desktop Client 3.9.3 behavior during the first sync. Done means the default encryption module is available, keys initialize after login, and files synchronize successfully without the reported error.