I wasn’t mixing WebDAV secure protocol (HTTPS) with Shared Folder Encryption, at all. I think @rfog was saying he had an Encrypted Folder in his setup on the NAS.
To my understanding, the thing is that all the layers of security (WebDAV on your own server/NAS, Encrypted Database in DT) are reduced to just one, once the passwords are synced in DTTG, which is the app Passcode or Face ID.