In the transmission config, encryption = 0 in its own gui will display encryption as Allow encryption, but looks like we use the term Encryption disabled with different meaning?
Did not understand the question. This part of the code was done by the program author (disappeared). No one reported an error. Maybe a few use this function.
Write in detail what is working incorrectly.
I believe that the wording is misleading the users, I think maybe the built-in web gui uses the correct term but we use the wrong one.
This is the screenshot of current latest v2.92 Transmission GUI, it's obviously that transmission supports to prefer encrypted connection, disable unencrypted connections, but not support "disable encryption", we should fix this.

If you are sure that you understand the problem and you know how to correct it - change the code.