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Honest question from someone who isn't an expert: why would they need to encrypt that data on my machine?

If the concern is that someone might gain access to my computer and see unencrypted things, what about all of the other things on my machine that aren't encrypted?

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Probably a concern that other apps can access this data? Anyway, pretty much every app outside the App Store stores data this way so I don't know what to make of that.

On MacOS, any app that access data in an odd location will pop up asking for permission first anyway.

A popup that looks like “Some app would like permission for your Documents folder” with OK already selected in blue.

I don't see it as a concern. I've got FileVault turned on anyway, if I didn't care I wouldn't bother with that.

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