Unfortunately this situation is likely to get more common in the future as the "security" crowd keep pushing for encryption-by-default with no regard to whether the user wants or is even aware of it.
Encryption is always a tradeoff; it trades the possibility of unauthorised access with the possibility of even the owner losing access permanently. IMHO this tradeoff needs careful consideration and not blind application.
Sure, sure buddy, I'll encrypt all of my PII data so nobody can access it... including the web application server.
Okay, fine, I'll decrypt it on the fly with a key in some API server... now the web server had unencrypted access to it, which sounds bad, but that's literally the only way that it can process and serve the data to users in a meaningful way! Now if someone hacks the web app server -- the common scenario -- then the attacker has unencrypted access!
I can encrypt the database, but at what layer? Storage? Cloud storage is already encrypted! Backups? Yeah, sure, but then what happens in a disaster? Who's got the keys? Are they contactable at 3am?
Etc, etc...
It's not only not as simple as ticking an "encrypted: yes" checkbox, it's maximally difficult, with a very direct tradeoff between accessibility and protection. The sole purpose of encrypting data is to prevent access!
Server stores encrypted blobs. Server doesn't have the keys.
Entire application is on the client, and just downloads and decrypts what it needs.
That said, encryption at rest is still good in terms of theft or mis-disposal.
You can have the key saved in your Microsoft account.
I find it very hard to believe that those who want their disk encrypted also want Microsoft to have the key.
Willing to bet plenty of hn readers are unaware of encryption going on at lower layers of the tech stack than they're aware of.
For example most hard drives encrypt all data, even when not commanded to, as a way to do 'data whitening' (ie making sure there are even numbers of 0's and 1's in the data stream and not some pattern which might throw off tracking.)
The encryption key is simply stored elsewhere in the drive - or nvram or in the firmware.
But it means if you extract the physical magnetic surface and read it with the right microscope, you might well find the data encrypted with no available key.
Most notably with line coding when using positive and negative voltages it is quite important for the average voltage to be zero to avoid building up a charge difference. Whitening can often be used if the downside to an imbalance or long runs is much lower. Notably in RF this is often about avoid harmonics with a little bit of symbol timing advantage thrown in.
Whitening doesn't really require encryption though. Weak cypher streams xored into the data work fine. Even a repeated 256 bit string is quite alright.
Whitening using any non trivial encryption key seems weird to me. AES with a key equal to the current offset in ECB mode already feels over-engineerd.
It's because there was an era when drives were expected to be able to do 'hardware' encryption with a user provided key, so reusing that hardware to also do whitening even if the user didn't provide a key was very convenient.
Plus you get all the other benefits - ie. a single scsi command can 'secure erase' the whole disk in milliseconds by simply changing the stored key.
Ethernet is a good example. It has the same problem where long strings of 0's or 1's can cause clock recovery problems. The solution as clock rates have increased is to just run all the data through a scrambler driven by a simple Linear Feedback Shifter.