[Bug]: Client side encryption triggers strange activities

⚠️ This issue respects the following points: ⚠️

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

Bug description

When I use client-side encryption I see activities that the "encrypted" folder (the name of my test folder) was renamed to "encrypted" every time I created a new file in the encrypted folder or if I edit a existing one:

tested on c.nc.com

Steps to reproduce

1. Create a new folder
2. Enable e2e encryption for the folder
3. create new files in the folder / edit existing one
4. check the activities in your browser

Expected behavior

No strange activities

Nextcloud Server version

31

Operating system

None

PHP engine version

None

Web server

None

Database engine version

None

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

None

Are you using the Nextcloud Server Encryption module?

None

What user-backends are you using?

• Default user-backend (database)
• LDAP/ Active Directory
• SSO - SAML
• Other

Configuration report

List of activated Apps

Nextcloud Signing status

Nextcloud Logs

Additional info

No response

No source file or test is identified in the report. Start by reproducing the issue with the listed steps, then inspect the resulting browser activities while creating and editing files in the encrypted folder. Done means those operations no longer produce misleading rename activities.