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How likely is this to lead to breaking all encryption by enabling way bigger superconducting quantum computers with way more qubits than are reasonable nowadays? Is this just going to turn into cyberwar on steroids?

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There are post-quantum-computing encryption schemes [1], thankfully.

[1]: https://en.wikipedia.org/wiki/Post-quantum_cryptography

That still leaves all encrypted traffic on the current internet vulnerable to a store-and-decrypt-later attack, which is more concerning the nearer that "later" is.

which is happening in room https://en.wikipedia.org/wiki/Room_641A for decades, all https traffic has been stored, and ones that use rsa (most of them) will retroactively be unveiled once we have shor's algorithm

Just because you could operate superconducting qubits at high temperature doesn't mean you would. By far the biggest problem for qubits is noise, and raising the temperature would increase noise. I won't claim a high Tc superconductor can't help... but my gut reaction is that it's irrelevant to the actual engineering issues as they currently stand.

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