It doesn't, at all. This seems to be for Sol and Terra, not Luna, and some other models that seem to switch between encrypted/unencrypted based on something, didn't dig deeper.
If you're using local models, it doesn't matter. Even if Codex itself was trying to encrypt stuff for local models (which doesn't make sense, but lets say), you'd still be using a local model so obviously you'd be able to access the plain-text, so wouldn't matter in that case anyways.
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It doesn't, at all. This seems to be for Sol and Terra, not Luna, and some other models that seem to switch between encrypted/unencrypted based on something, didn't dig deeper.
If you're using local models, it doesn't matter. Even if Codex itself was trying to encrypt stuff for local models (which doesn't make sense, but lets say), you'd still be using a local model so obviously you'd be able to access the plain-text, so wouldn't matter in that case anyways.