It never had encryption when locked. Can't really do that with dm-crypt since it's all or nothing. It became feasible with this.
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There's the keystore, which is based on lock state. So it's possible to have data that's encrypted at rest but it's a pain.
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Now that they're using ext4 encryption, they adopted per-user encryption. They haven't implemented actually logging out though.
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LOL @ "haven't implemented actually logging out".
End of conversation
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