Just tried it, and it worked fine for me.
I do a lot of testing, but don't think I'd tried the combination of encrypted, TC set up with Secure Shared Disks with Accounts, and a full restore in a while, so that's what I did.
As far as I can tell, it's exactly what you did:
Set TC Disks to Secure Shared Disks with accounts
Created one account with Read and Write access
Selected it as backup destination; checked Encrypt backups, created encryption password
Did initial backup, then one incremental
Powered off, restarted in Recovery mode
Selected Restore From Time Machine Backup
Selected the TC
Entered the Account Password
Then the Encryption Password
Got the window showing both Backup Dates & Times on the left, OSX versions on the right
Selected the first one
Then the next window appeared to select the restore destination
I didn't continue to do the actual restore, but clearly the backups were recognized and it would have worked.
It shouldn't matter, but just to confirm, what version of OSX are you on, and what version of firmware is on your TC?