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Hm yeah, I always think of encryption at rest as "the drive handles encryption itself", rather than "we encrypted these archives before we wrote them", but fair enough.
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Not necessarily the drive, but yeah, where standards mandate encryption at rest you need to have the files on the live disk encrypted.

Usually it's much less of a headache to luks/bitlocker/SED the whole drive so that you don't have to worry about swap files and logs

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