@A.Elrayes, Thanks for posting in Q&A. Based on my understanding, this is by design. For "Encrypt Org data" on Android device, content on the device storage is always encrypted and can only be opened by apps that support Intune's app protection policies and have policy assigned.
https://learn.microsoft.com/en-us/mem/intune/apps/app-protection-policy-settings-android#encryption
For the setting on iOS device, Intune enforces iOS/iPadOS device-level encryption to protect app data.
https://learn.microsoft.com/en-us/mem/intune/apps/app-protection-policy-settings-ios#encryption
Therefore, we get the different behavior on the different platform.
Hope the above information can help.
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