The thing is that in most cases you don’t need a VPN to protect yourself on a public network. The ubiquity of TLS on the internet already does a great job of that. Using a VPN on a public network for privacy and security reasons amounts to little more than the obfuscation of which sites you’re visiting, and some fallback protection against improperly configured websites. So while I agree it isn’t entirely a non-issue, it definitely isn’t as big of an issue as one might assume given the scary wording of the headline and article.
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They mean encrypted at rest. As in, Proton cannot hand over a copy of all your emails to a law enforcement agency, they don’t have access.
This means law enforcement would have to capture an unencrypted email in transit, or obtains your emails from either recipient individually.