O erro está em dizer que o estado da criptografia de destino será herdado. Se uma pasta for criptografada, não será automaticamente descriptografada, a menos que o usuário tenha permissão para descriptografar os arquivos e esteja movendo/copiando para um volume FAT/FAT32.
Fonte: https://technet.microsoft.com/en-us/magazine/2006.05.howitworks.aspx
It’s also important to understand how EFS affects file moves and copies. If you copy or move an unencrypted file (or folder not marked for encryption) into a folder that is marked for encryption, that file (or all of the files in that folder) will become encrypted. Once encrypted, files will remain so no matter where you move them within the local file system—whether to folders not marked for encryption or to completely different partitions. The individual files themselves are not automatically decrypted.
However, if a user has the permission to decrypt a file, and that user copies or moves an encrypted file to a file allocation table (FAT) or FAT32 partition, the destination file will be unencrypted.