Yes, data is encrypted in transit always.
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Below which I got from "https://learn.microsoft.com/en-us/security/benchmark/azure/baselines/site-recovery-security-baseline?toc=%2Fazure%2Fsite-recovery%2Ftoc.json"
Site Recovery supports data encryption in transit with Transport Layer Security (TLS) v1.2 or greater. By default, Azure provides encryption for data in transit between Azure data centers.