Update utils documentation

**Feature request**
It would be great to have encryption for hooks.

**Use case**
Many users need this functionality for production deployments.

**Implementation idea**
Add a new config option `enable_encryption` with default `false`.

No files, tests, or entry points are named. Start by locating the hook configuration and execution paths, then determine how the proposed enable_encryption option would apply to hooks and what encryption behavior production deployments require. Done should include an agreed scope and tests for the disabled default and enabled behavior.

Written by the indexing model from the issue text.