The data is encrypted per small chunks. Corruption in a chunk renders that chunk useless, but usually won’t impact other chunks. There is small sensitive data,

The data is encrypted per small chunks. Corruption in a chunk renders that chunk useless, but usually won’t impact other chunks. There is small sensitive data, for example the header of a LUKS volume containing the password and encryption details, that if corrupted, the whole disk can be lost. You can back up this header. So, no, a small corruption in an encrypted disk or FS won’t necessarily impact the entire system. In ZFS, a bit flip corrupts files in which it occurs, not the whole pool (with or without encryption). On the other hand, you are right to be worried that encryption is another layer that can go wrong. As mentioned, password and encryption details must not be corrupted.