Q: Using iCould to bypass encrypted backups

If all the information is still on your iPhone, why are you trying to restore from a backup?

What exactly are you trying to do?

Ah, well just delete the current backup and create a new one to replace it without encryption turned on.

Anyone know the answer to this? I have essentially the same question here: https://discussions.apple.com/thread/5936757

I had the same problem and was able to solve it.  Here is my problem and solution  https://discussions.apple.com/thread/5943105

Essentially even though your phone will not create any new un encryped backups (as the encryption password settings carry over to the phone not to itunes), I got a second ios device (an ipod touch) and put that on the same itunes and icloud account, then it pulled everything from the cloud onto it , wiped my phone clean, then synced to the cloud again and everything went back onto the phone. See all the details in my forum thread.