A group of Microsoft Products and technologies used for sharing and managing content, knowledge, and applications.
Hi Default_349,
We appreciate that you posted back and confirmed the scenario with us.
We read your description, it seems that you are using SharePoint Online, and you want to apply policy to SharePoint site and encrypted all files insider this SharePoint site.
If my understanding is right, generally, if you want to encrypt the files in SharePoint site, as Igor mentioned above, you can use Sensitivity labels, you can use sensitivity labels to protect content in Office apps across different platforms which is include Office for web. Enable built-in labeling for supported Office files in SharePoint and OneDrive so that users can apply your sensitivity labels in Office for the web. When this feature is enabled, users will see the Sensitivity button on the ribbon so they can apply labels, and see any applied label name on the status bar.
Enabling this feature also results in SharePoint and OneDrive being able to process the contents of Office files that have been encrypted by using a sensitivity label.
For more details, you can refer to this article: Enable sensitivity labels for Office files - Microsoft Purview | Microsoft Docs
If the scenario above is not consistent with yours, you can also post back and point that. May I know if you also want to encrypt SharePoint lists?
Your understanding and patience will be highly appreciated. I hope that you are keeping safe and well!
Best Regards,
Sukie