Zoom's technical preview introducing end-to-end (E2E) encryption (released on October 25, 2020) currently does not support cloud recording, among other regularly used in-meeting features such as private (1-on-1) chat messaging, meeting reactions, breakout rooms, live streaming, and live transcription (applicable for meetings in English).
If you apply end-to-end encryption for your CAE LearningSpace virtual encounters, SPs and learners can still host and join meetings and use the limited in-room meeting features. Still, the virtual encounters will not be recorded nor saved in the Video Review module as usual.