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Presumably. However, if it was a PR drone who wrote that, it may or may not be accurate as to whether or not it was encoded/encrypted.

I would just assume that it has in fact been compromised though.

Or at least a summary version of it with all the data they felt was relevant to keep... so everything we currently know to be important.

I would hope that it means, “some data is extracted to a format that can be used for particular operations that the service is doing, but not others that are possible with the full DNA”. Sort of an index.

Of course, it would still mean stolen data could be used for the same operations (and some others) if someone figures out the encoding, or data can be copy-pasted where it doesn't belong.

This seems very odd. These sites add features over time when new patterns are discovered, so I'd doubt that they delete any parts not used today because they might be useful in the future...