iCloud Drive shows 'Encrypted Folder' and 'Encrypted File' instead of correct folder and files names

From what I can tell from looking at this myself. "Encrypted Files" and "Encrypted Folders" are files and folders that are stored in iCloud Drive which have never been downloaded locally.

For example, I just saved 3 PDFs in the Documents app on my Iphone to iCloud Drive. On my iPhone, when I looked at the Managed Storage for PDF Expert, which is written by the same App developers, they show their names. On my iPad they showed up as "Encrypted File", until I actuallly opened the Documents app and they downloaded. After that, they showed the correct name in Managed Storage. Another App I have installed only on my iPad shows the files names on the iPad and "Encrypted ..." on my iPhone.

Basically for devices that never had the App in question installed or the App hasn't been opened since the files were uploaded, the files uploaded to iCloud Drive will show as encrypted. This isn't a problem, it just means that the device hasn't decrypted the files. This is actually a good sign as it means your files are encrypted in the cloud.

Edit: I do noticed for some apps, that some files always show "Encrypted". My guess is that they are left over from the pre-iCloud Drive transition and aren't actually being used since the app works fine without them and when I delete them and re-run the app, they aren't recreated.

I am also having this problem with all the files in my iCloud Drive... You need to contact Apple Support and get an engineer to fix the issue.

I am in the process of having it rectified but it's taking them a while.