The "Encrypted" scan result appears on the Virus/Malware Logs when the scan engine (VSAPI) is unable to perform the configured scan action. This happens if the file is locked by another application. However to prevent infection, OfficeScan encrypts the file if it is open for write access.
An encrypted file becomes harmless and remains on the same location and when you run a manual scan, OfficeScan will no longer detect the file since it has already been encrypted. It is recommended to restart the machine to unlock related processes running and delete the file manually from the system. Below is an encrypted version of the file opened in Notepad:
The file stays on the same location where it was detected: