E2E enabled private channels can be seen by channel members whether they enter their e2e pw or not

Description

I created private channels with e2e encryption enabled. I see the banner when I log in and whether I enter my password or not I’m able to see posts in those private channels. Not sure if I’m just misunderstanding the concept here or if I have it wrongly configured.

Also, as the admin after I disable encrypted for a channel I’m not able to re-enable it. I shows a little ‘no’ sign over the toggle switch.

Not sure how much about server setup is relevant to my question since I think it’s probably more about my understanding of the functionality of the platform but I’m happy to provide more details if necessary.