Text app and Android Direct Editing permit creating data unencrypted within encrypted folders

I have the text app enabled. I create a new text file ("enc.md") within an encrypted folder. When I edit this file the data shows up in plain text on the server. I'm reporting this issue here rather than in the "text" app because the e2e encryption system should not permit storing of unencrypted data in encrypted folders, or should not allow apps to store data in them, or should at least note which files are actually encrypted

Steps to reproduce

• on android nextcloud app (3.10.1)
  • create new folder "Encrypted"
  • in files view change folder properties to encrypted
  • open Encrypted folder
  • press "+" and choose to create new text document "enc.md"
  • add some text to document
  • close document
• on server: cat data/user/files/Encrypted/enc.md
  • observe that plaintext data is shown

Expected behaviour

Any data stored in encrypted folder should appear encrypted on the server hard disk

Actual behaviour

cat data/_user_/files/Encrypted/enc.md shows plaintext data

Server configuration

Operating system: ubuntu 18.04

Web server: nginx 1.14.0-0ubuntu1.7

Database: whatever is in the docker hub nextcloud:18.0.2-fpm-alpine

PHP version: whatever is in the docker hub nextcloud:18.0.2-fpm-alpine

Nextcloud version: docker hub nextcloud:18.0.2-fpm-alpine

Updated from an older Nextcloud/ownCloud or fresh install: fresh

Where did you install Nextcloud from: docker hub nextcloud:18.0.2-fpm-alpine

Android app version: 3.10.1

Reproduce the Android 3.10.1 flow described in the issue, then inspect how the Text app creates and saves a document in an encrypted folder. Check the resulting data at data/user/files/Encrypted/enc.md; done means text created through the Text app is encrypted on the server or the unsupported behavior is clearly prevented or identified.