The backups are unencrypted as highlighted in the UI (if I recall correctly). They re-generate the keys when you switch phones / re-install / clear data. That's when you get to see the "XYZ's security code changed" service message
> For example, if you use a data backup service integrated with our Services (like iCloud or Google Drive), they will receive information you share with them, such as your WhatsApp messages.
https://www.whatsapp.com/legal/updates/privacy-policy/?lang=...
Looks like you're right, it must be unencrypted.