Encryption - Is it working?

I used encryption in differential and incremental modes to backup my files to an external hard drive. However I am able to look at the backup files in Windows Explorer, I see them as if they are not encrypted at all. I use Simple Copy method so the files look exactly as normal. I even moved the drive to another computer, and I was still able to view the files normally. Is the purpose of encryption not to encrypt them during normal viewing operations? Thank you.

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