What I have read in the documentation is below -
What happens under the hood when I use this plugin?
This plugin replaces the platform’s default local storage database engine (SQLite) with a ciphered one (SQLCipher). The plugin generates a securely randomized key which is used to cipher the database. This key is stored on the device in a secure way, by using the KeyChain (iOS) or the KeyStore (Android).
It seems this plugin impact on Device SQLite (The Database Engine) that should impact the complete application and its Local Entity.
The exact could be clarified by @OutSystems R&D Team :)