Does apple even encrypt the actual image data on device? Their system document says "payload = visual derivative + neural hash" and only that is encrypted with

Does apple even encrypt the actual image data on device? Their system document says "payload = visual derivative + neural hash" and only that is encrypted with a secondary level encryption. And they didn't go through with e2ee for icloud last I heard. This elaborate system makes no sense if they very well could have done it in cloud. It feels like elaborate privacy theatre trojan horse to introduce in device surveillance.