diff --git a/src/common/syncjournaldb.cpp b/src/common/syncjournaldb.cpp
index 2a91a8f79..9aad5599b 100644
--- a/src/common/syncjournaldb.cpp
+++ b/src/common/syncjournaldb.cpp
@@ -66,7 +66,7 @@ static void fillFileRecordFromGetQuery(SyncJournalFileRecord &rec, SqlQuery &que
     rec._serverHasIgnoredFiles = (query.intValue(8) > 0);
     rec._checksumHeader = query.baValue(9);
     rec._e2eMangledName = query.baValue(10);
-    rec._isE2eEncrypted = query.intValue(11) > 0;
+    rec._isE2eEncrypted = static_cast<SyncJournalFileRecord::EncryptionStatus>(query.intValue(11));
     rec._lockstate._locked = query.intValue(12) > 0;
     rec._lockstate._lockOwnerDisplayName = query.stringValue(13);
     rec._lockstate._lockOwnerId = query.stringValue(14);
@@ -968,7 +968,7 @@ Result<void, QString> SyncJournalDb::setFileRecord(const SyncJournalFileRecord &
     query->bindValue(15, checksum);
     query->bindValue(16, contentChecksumTypeId);
     query->bindValue(17, record._e2eMangledName);
-    query->bindValue(18, record.isE2eEncrypted());
+    query->bindValue(18, static_cast<int>(record._isE2eEncrypted));
     query->bindValue(19, record._lockstate._locked ? 1 : 0);
     query->bindValue(20, record._lockstate._lockOwnerType);
     query->bindValue(21, record._lockstate._lockOwnerDisplayName);
@@ -2694,4 +2694,10 @@ bool operator==(const SyncJournalDb::UploadInfo &lhs,
         && lhs._contentChecksum == rhs._contentChecksum;
 }
 
+QDebug& operator<<(QDebug &stream, const SyncJournalFileRecord::EncryptionStatus status)
+{
+    stream << static_cast<int>(status);
+    return stream;
+}
+
 } // namespace OCC
diff --git a/src/common/syncjournalfilerecord.h b/src/common/syncjournalfilerecord.h
index f32e4c588..4daaf1120 100644
--- a/src/common/syncjournalfilerecord.h
+++ b/src/common/syncjournalfilerecord.h
@@ -53,6 +53,12 @@ public:
         return !_path.isEmpty();
     }
 
+    enum class EncryptionStatus : int {
+        NotEncrypted = 0,
+        Encrypted = 1,
+        EncryptedMigratedV1_2 = 2,
+    };
+
     /** Returns the numeric part of the full id in _fileId.
      *
      * On the server this is sometimes known as the internal file id.
@@ -67,7 +73,7 @@ public:
     [[nodiscard]] bool isVirtualFile() const { return _type == ItemTypeVirtualFile || _type == ItemTypeVirtualFileDownload; }
     [[nodiscard]] QString path() const { return QString::fromUtf8(_path); }
     [[nodiscard]] QString e2eMangledName() const { return QString::fromUtf8(_e2eMangledName); }
-    [[nodiscard]] bool isE2eEncrypted() const { return _isE2eEncrypted; }
+    [[nodiscard]] bool isE2eEncrypted() const { return _isE2eEncrypted != SyncJournalFileRecord::EncryptionStatus::NotEncrypted; }
 
     QByteArray _path;
     quint64 _inode = 0;
@@ -80,13 +86,15 @@ public:
     bool _serverHasIgnoredFiles = false;
     QByteArray _checksumHeader;
     QByteArray _e2eMangledName;
-    bool _isE2eEncrypted = false;
+    EncryptionStatus _isE2eEncrypted = EncryptionStatus::NotEncrypted;
     SyncJournalFileLockInfo _lockstate;
     bool _isShared = false;
     qint64 _lastShareStateFetchedTimestamp = 0;
     bool _sharedByMe = false;
 };
 
+QDebug& operator<<(QDebug &stream, const SyncJournalFileRecord::EncryptionStatus status);
+
 bool OCSYNC_EXPORT
 operator==(const SyncJournalFileRecord &lhs,
     const SyncJournalFileRecord &rhs);
diff --git a/src/libsync/clientsideencryption.cpp b/src/libsync/clientsideencryption.cpp
index 04bd0f0b3..16f121e18 100644
--- a/src/libsync/clientsideencryption.cpp
+++ b/src/libsync/clientsideencryption.cpp
@@ -1498,7 +1498,19 @@ void ClientSideEncryption::fetchAndValidatePublicKeyFromServer(const AccountPtr
     job->start();
 }
 
-FolderMetadata::FolderMetadata(AccountPtr account, const QByteArray& metadata, int statusCode) : _account(account)
+FolderMetadata::FolderMetadata(AccountPtr account)
+    : _account(account)
+{
+    qCInfo(lcCseMetadata()) << "Setupping Empty Metadata";
+    setupEmptyMetadata();
+}
+
+FolderMetadata::FolderMetadata(AccountPtr account,
+                               RequiredMetadataVersion requiredMetadataVersion,
+                               const QByteArray& metadata,
+                               int statusCode)
+    : _account(account)
+    , _requiredMetadataVersion(requiredMetadataVersion)
 {
     if (metadata.isEmpty() || statusCode == 404) {
         qCInfo(lcCseMetadata()) << "Setupping Empty Metadata";
@@ -1541,7 +1553,7 @@ void FolderMetadata::setupExistingMetadata(const QByteArray& metadata)
     }
 
     auto migratedMetadata = false;
-    if (_metadataKey.isEmpty()) {
+    if (_metadataKey.isEmpty() && _requiredMetadataVersion != RequiredMetadataVersion::Version1_2) {
         qCDebug(lcCse()) << "Migrating from v1.1 to v1.2";
         migratedMetadata = true;
 
@@ -1618,6 +1630,8 @@ void FolderMetadata::setupExistingMetadata(const QByteArray& metadata)
             file.mimetype = QByteArrayLiteral("httpd/unix-directory");
         }
 
+        qCDebug(lcCseMetadata) << "encrypted file" << decryptedFileObj["filename"].toString() << decryptedFileObj["key"].toString() << it.key();
+
         _files.push_back(file);
     }
 
@@ -1631,6 +1645,10 @@ void FolderMetadata::setupExistingMetadata(const QByteArray& metadata)
     // decryption finished, create new metadata key to be used for encryption
     _metadataKey = EncryptionHelper::generateRandom(metadataKeySize);
     _isMetadataSetup = true;
+
+    if (migratedMetadata) {
+        _encryptedMetadataNeedUpdate = true;
+    }
 }
 
 // RSA/ECB/OAEPWithSHA-256AndMGF1Padding using private / public key.
@@ -1792,6 +1810,11 @@ bool FolderMetadata::isFileDropPresent() const
     return _fileDrop.size() > 0;
 }
 
+bool FolderMetadata::encryptedMetadataNeedUpdate() const
+{
+    return _encryptedMetadataNeedUpdate;
+}
+
 bool FolderMetadata::moveFromFileDropToFiles()
 {
     if (_fileDrop.isEmpty()) {
diff --git a/src/libsync/clientsideencryption.h b/src/libsync/clientsideencryption.h
index a180ef78f..811dd8edb 100644
--- a/src/libsync/clientsideencryption.h
+++ b/src/libsync/clientsideencryption.h
@@ -186,7 +186,18 @@ struct EncryptedFile {
 
 class OWNCLOUDSYNC_EXPORT FolderMetadata {
 public:
-    FolderMetadata(AccountPtr account, const QByteArray& metadata = QByteArray(), int statusCode = -1);
+    enum class RequiredMetadataVersion {
+        Version1,
+        Version1_2,
+    };
+
+    explicit FolderMetadata(AccountPtr account);
+
+    explicit FolderMetadata(AccountPtr account,
+                            RequiredMetadataVersion requiredMetadataVersion,
+                            const QByteArray& metadata,
+                            int statusCode = -1);
+
     [[nodiscard]] QByteArray encryptedMetadata() const;
     void addEncryptedFile(const EncryptedFile& f);
     void removeEncryptedFile(const EncryptedFile& f);
@@ -196,6 +207,8 @@ public:
 
     [[nodiscard]] bool isFileDropPresent() const;
 
+    [[nodiscard]] bool encryptedMetadataNeedUpdate() const;
+
     [[nodiscard]] bool moveFromFileDropToFiles();
 
     [[nodiscard]] QJsonObject fileDrop() const;
@@ -221,9 +234,11 @@ private:
 
     QVector<EncryptedFile> _files;
     AccountPtr _account;
+    RequiredMetadataVersion _requiredMetadataVersion = RequiredMetadataVersion::Version1_2;
     QVector<QPair<QString, QString>> _sharing;
     QJsonObject _fileDrop;
     bool _isMetadataSetup = false;
+    bool _encryptedMetadataNeedUpdate = false;
 };
 
 } // namespace OCC
diff --git a/src/libsync/discovery.cpp b/src/libsync/discovery.cpp
index c9aa2d02a..fea387865 100644
--- a/src/libsync/discovery.cpp
+++ b/src/libsync/discovery.cpp
@@ -532,7 +532,7 @@ void ProcessDirectoryJob::processFileAnalyzeRemoteInfo(
     item->_etag = serverEntry.etag;
     item->_directDownloadUrl = serverEntry.directDownloadUrl;
     item->_directDownloadCookies = serverEntry.directDownloadCookies;
-    item->_isEncrypted = serverEntry.isE2eEncrypted();
+    item->_isEncrypted = serverEntry.isE2eEncrypted() ? SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 : SyncFileItem::EncryptionStatus::NotEncrypted;
     item->_encryptedFileName = [=] {
         if (serverEntry.e2eMangledName.isEmpty()) {
             return QString();
@@ -1292,7 +1292,7 @@ void ProcessDirectoryJob::processFileAnalyzeLocalInfo(
         if (base.isE2eEncrypted()) {
             // renaming the encrypted folder is done via remove + re-upload hence we need to mark the newly created folder as encrypted
             // base is a record in the SyncJournal database that contains the data about the being-renamed folder with it's old name and encryption information
-            item->_isEncrypted = true;
+            item->_isEncrypted = SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2;
         }
         postProcessLocalNew();
         finalize();
@@ -1850,6 +1850,7 @@ DiscoverySingleDirectoryJob *ProcessDirectoryJob::startAsyncServerQuery()
     connect(serverJob, &DiscoverySingleDirectoryJob::finished, this, [this, serverJob](const auto &results) {
         if (_dirItem) {
             _dirItem->_isFileDropDetected = serverJob->isFileDropDetected();
+            _dirItem->_isEncryptedMetadataNeedUpdate = serverJob->encryptedMetadataNeedUpdate();
             qCInfo(lcDisco) << "serverJob has finished for folder:" << _dirItem->_file << " and it has _isFileDropDetected:" << true;
         }
         _discoveryData->_currentlyActiveJobs--;
diff --git a/src/libsync/discoveryphase.cpp b/src/libsync/discoveryphase.cpp
index dc327b237..54e8e4c38 100644
--- a/src/libsync/discoveryphase.cpp
+++ b/src/libsync/discoveryphase.cpp
@@ -410,6 +410,11 @@ bool DiscoverySingleDirectoryJob::isFileDropDetected() const
     return _isFileDropDetected;
 }
 
+bool DiscoverySingleDirectoryJob::encryptedMetadataNeedUpdate() const
+{
+    return _encryptedMetadataNeedUpdate;
+}
+
 static void propertyMapToRemoteInfo(const QMap<QString, QString> &map, RemoteInfo &result)
 {
     for (auto it = map.constBegin(); it != map.constEnd(); ++it) {
@@ -530,7 +535,7 @@ void DiscoverySingleDirectoryJob::directoryListingIteratedSlot(const QString &fi
             _fileId = map.value("id").toUtf8();
         }
         if (map.contains("is-encrypted") && map.value("is-encrypted") == QStringLiteral("1")) {
-            _isE2eEncrypted = true;
+            _isE2eEncrypted = SyncFileItem::EncryptionStatus::Encrypted;
             Q_ASSERT(!_fileId.isEmpty());
         }
         if (map.contains("size")) {
@@ -621,8 +626,13 @@ void DiscoverySingleDirectoryJob::metadataReceived(const QJsonDocument &json, in
     qCDebug(lcDiscovery) << "Metadata received, applying it to the result list";
     Q_ASSERT(_subPath.startsWith('/'));
 
-    const auto metadata = FolderMetadata(_account, json.toJson(QJsonDocument::Compact), statusCode);
+    const auto metadata = FolderMetadata(_account,
+                                         _isE2eEncrypted == SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 ? FolderMetadata::RequiredMetadataVersion::Version1_2 : FolderMetadata::RequiredMetadataVersion::Version1,
+                                         json.toJson(QJsonDocument::Compact),
+                                         statusCode);
     _isFileDropDetected = metadata.isFileDropPresent();
+    _encryptedMetadataNeedUpdate = metadata.encryptedMetadataNeedUpdate();
+
     const auto encryptedFiles = metadata.files();
 
     const auto findEncryptedFile = [=](const QString &name) {
diff --git a/src/libsync/discoveryphase.h b/src/libsync/discoveryphase.h
index 5f5a4223e..c833fd719 100644
--- a/src/libsync/discoveryphase.h
+++ b/src/libsync/discoveryphase.h
@@ -145,6 +145,7 @@ public:
     void start();
     void abort();
     [[nodiscard]] bool isFileDropDetected() const;
+    [[nodiscard]] bool encryptedMetadataNeedUpdate() const;
 
     // This is not actually a network job, it is just a job
 signals:
@@ -162,7 +163,7 @@ private slots:
 
 private:
 
-    [[nodiscard]] bool isE2eEncrypted() const { return _isE2eEncrypted; }
+    [[nodiscard]] bool isE2eEncrypted() const { return _isE2eEncrypted != SyncFileItem::EncryptionStatus::NotEncrypted; }
 
     QVector<RemoteInfo> _results;
     QString _subPath;
@@ -178,8 +179,9 @@ private:
     // If this directory is an external storage (The first item has 'M' in its permission)
     bool _isExternalStorage = false;
     // If this directory is e2ee
-    bool _isE2eEncrypted = false;
+    SyncFileItem::EncryptionStatus _isE2eEncrypted = SyncFileItem::EncryptionStatus::NotEncrypted;
     bool _isFileDropDetected = false;
+    bool _encryptedMetadataNeedUpdate = false;
     // If set, the discovery will finish with an error
     int64_t _size = 0;
     QString _error;
diff --git a/src/libsync/encryptfolderjob.cpp b/src/libsync/encryptfolderjob.cpp
index 033199ba3..99a502985 100644
--- a/src/libsync/encryptfolderjob.cpp
+++ b/src/libsync/encryptfolderjob.cpp
@@ -56,7 +56,7 @@ void EncryptFolderJob::slotEncryptionFlagSuccess(const QByteArray &fileId)
         qCWarning(lcEncryptFolderJob) << "No valid record found in local DB for fileId" << fileId;
     }
 
-    rec._isE2eEncrypted = true;
+    rec._isE2eEncrypted = SyncJournalFileRecord::EncryptionStatus::EncryptedMigratedV1_2;
     const auto result = _journal->setFileRecord(rec);
     if (!result) {
         qCWarning(lcEncryptFolderJob) << "Error when setting the file record to the database" << rec._path << result.error();
diff --git a/src/libsync/owncloudpropagator.cpp b/src/libsync/owncloudpropagator.cpp
index 51510ad88..15567d680 100644
--- a/src/libsync/owncloudpropagator.cpp
+++ b/src/libsync/owncloudpropagator.cpp
@@ -646,7 +646,7 @@ void OwncloudPropagator::startDirectoryPropagation(const SyncFileItemPtr &item,
         const auto currentDirJob = directories.top().second;
         currentDirJob->appendJob(directoryPropagationJob.get());
     }
-    if (item->_isFileDropDetected) {
+    if (item->_isFileDropDetected || item->_isEncryptedMetadataNeedUpdate) {
         directoryPropagationJob->appendJob(new UpdateFileDropMetadataJob(this, item->_file));
         item->_instruction = CSYNC_INSTRUCTION_NONE;
         _anotherSyncNeeded = true;
diff --git a/src/libsync/propagatedownloadencrypted.cpp b/src/libsync/propagatedownloadencrypted.cpp
index 77aadbce9..9788d5cf1 100644
--- a/src/libsync/propagatedownloadencrypted.cpp
+++ b/src/libsync/propagatedownloadencrypted.cpp
@@ -73,7 +73,9 @@ void PropagateDownloadEncrypted::checkFolderEncryptedMetadata(const QJsonDocumen
   qCDebug(lcPropagateDownloadEncrypted) << "Metadata Received reading"
                                         << _item->_instruction << _item->_file << _item->_encryptedFileName;
   const QString filename = _info.fileName();
-  const FolderMetadata metadata(_propagator->account(), json.toJson(QJsonDocument::Compact));
+  const FolderMetadata metadata(_propagator->account(),
+                                _item->_isEncrypted == SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 ? FolderMetadata::RequiredMetadataVersion::Version1_2 : FolderMetadata::RequiredMetadataVersion::Version1,
+                                json.toJson(QJsonDocument::Compact));
   if (metadata.isMetadataSetup()) {
       const QVector<EncryptedFile> files = metadata.files();
 
diff --git a/src/libsync/propagateremotedeleteencrypted.cpp b/src/libsync/propagateremotedeleteencrypted.cpp
index 1d7ae8aa6..ee1b57dee 100644
--- a/src/libsync/propagateremotedeleteencrypted.cpp
+++ b/src/libsync/propagateremotedeleteencrypted.cpp
@@ -51,7 +51,9 @@ void PropagateRemoteDeleteEncrypted::slotFolderEncryptedMetadataReceived(const Q
         return;
     }
 
-    FolderMetadata metadata(_propagator->account(), json.toJson(QJsonDocument::Compact), statusCode);
+    FolderMetadata metadata(_propagator->account(),
+                            _item->_isEncrypted == SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 ? FolderMetadata::RequiredMetadataVersion::Version1_2 : FolderMetadata::RequiredMetadataVersion::Version1,
+                            json.toJson(QJsonDocument::Compact), statusCode);
 
     if (!metadata.isMetadataSetup()) {
         taskFailed();
diff --git a/src/libsync/propagateremotedeleteencryptedrootfolder.cpp b/src/libsync/propagateremotedeleteencryptedrootfolder.cpp
index c9f82ee8e..5cae505ff 100644
--- a/src/libsync/propagateremotedeleteencryptedrootfolder.cpp
+++ b/src/libsync/propagateremotedeleteencryptedrootfolder.cpp
@@ -81,7 +81,9 @@ void PropagateRemoteDeleteEncryptedRootFolder::slotFolderEncryptedMetadataReceiv
         return;
     }
 
-    FolderMetadata metadata(_propagator->account(), json.toJson(QJsonDocument::Compact), statusCode);
+    FolderMetadata metadata(_propagator->account(),
+                            _item->_isEncrypted == SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 ? FolderMetadata::RequiredMetadataVersion::Version1_2 : FolderMetadata::RequiredMetadataVersion::Version1,
+                            json.toJson(QJsonDocument::Compact), statusCode);
 
     if (!metadata.isMetadataSetup()) {
         taskFailed();
diff --git a/src/libsync/propagateremotemkdir.cpp b/src/libsync/propagateremotemkdir.cpp
index b4dc65b97..82a09c0d7 100644
--- a/src/libsync/propagateremotemkdir.cpp
+++ b/src/libsync/propagateremotemkdir.cpp
@@ -243,7 +243,7 @@ void PropagateRemoteMkdir::slotEncryptFolderFinished()
 {
     qCDebug(lcPropagateRemoteMkdir) << "Success making the new folder encrypted";
     propagator()->_activeJobList.removeOne(this);
-    _item->_isEncrypted = true;
+    _item->_isEncrypted = SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2;
     success();
 }
 
diff --git a/src/libsync/propagateuploadencrypted.cpp b/src/libsync/propagateuploadencrypted.cpp
index f027c1c8a..ad2eff35c 100644
--- a/src/libsync/propagateuploadencrypted.cpp
+++ b/src/libsync/propagateuploadencrypted.cpp
@@ -121,7 +121,9 @@ void PropagateUploadEncrypted::slotFolderEncryptedMetadataReceived(const QJsonDo
   qCDebug(lcPropagateUploadEncrypted) << "Metadata Received, Preparing it for the new file." << json.toVariant();
 
   // Encrypt File!
-  _metadata.reset(new FolderMetadata(_propagator->account(), json.toJson(QJsonDocument::Compact), statusCode));
+  _metadata.reset(new FolderMetadata(_propagator->account(),
+                                     _item->_isEncrypted == SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 ? FolderMetadata::RequiredMetadataVersion::Version1_2 : FolderMetadata::RequiredMetadataVersion::Version1,
+                                     json.toJson(QJsonDocument::Compact), statusCode));
 
   if (!_metadata->isMetadataSetup()) {
       if (_isFolderLocked) {
@@ -169,7 +171,7 @@ void PropagateUploadEncrypted::slotFolderEncryptedMetadataReceived(const QJsonDo
   encryptedFile.initializationVector = EncryptionHelper::generateRandom(16);
 
   _item->_encryptedFileName = _remoteParentPath + QLatin1Char('/') + encryptedFile.encryptedFilename;
-  _item->_isEncrypted = true;
+  _item->_isEncrypted = SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2;
 
   qCDebug(lcPropagateUploadEncrypted) << "Creating the encrypted file.";
 
diff --git a/src/libsync/syncfileitem.cpp b/src/libsync/syncfileitem.cpp
index 135f3c637..ee2805e72 100644
--- a/src/libsync/syncfileitem.cpp
+++ b/src/libsync/syncfileitem.cpp
@@ -49,7 +49,7 @@ SyncJournalFileRecord SyncFileItem::toSyncJournalFileRecordWithInode(const QStri
     rec._serverHasIgnoredFiles = _serverHasIgnoredFiles;
     rec._checksumHeader = _checksumHeader;
     rec._e2eMangledName = _encryptedFileName.toUtf8();
-    rec._isE2eEncrypted = isEncrypted();
+    rec._isE2eEncrypted = isEncrypted() ? SyncJournalFileRecord::EncryptionStatus::EncryptedMigratedV1_2 : SyncJournalFileRecord::EncryptionStatus::NotEncrypted;
     rec._lockstate._locked = _locked == LockStatus::LockedItem;
     rec._lockstate._lockOwnerDisplayName = _lockOwnerDisplayName;
     rec._lockstate._lockOwnerId = _lockOwnerId;
@@ -86,7 +86,7 @@ SyncFileItemPtr SyncFileItem::fromSyncJournalFileRecord(const SyncJournalFileRec
     item->_serverHasIgnoredFiles = rec._serverHasIgnoredFiles;
     item->_checksumHeader = rec._checksumHeader;
     item->_encryptedFileName = rec.e2eMangledName();
-    item->_isEncrypted = rec.isE2eEncrypted();
+    item->_isEncrypted = static_cast<SyncFileItem::EncryptionStatus>(rec._isE2eEncrypted);
     item->_locked = rec._lockstate._locked ? LockStatus::LockedItem : LockStatus::UnlockedItem;
     item->_lockOwnerDisplayName = rec._lockstate._lockOwnerDisplayName;
     item->_lockOwnerId = rec._lockstate._lockOwnerId;
@@ -123,7 +123,7 @@ SyncFileItemPtr SyncFileItem::fromProperties(const QString &filePath, const QMap
     item->_isShared = item->_remotePerm.hasPermission(RemotePermissions::IsShared);
     item->_lastShareStateFetchedTimestamp = QDateTime::currentMSecsSinceEpoch();
 
-    item->_isEncrypted = properties.value(QStringLiteral("is-encrypted")) == QStringLiteral("1");
+    item->_isEncrypted = (properties.value(QStringLiteral("is-encrypted")) == QStringLiteral("1") ? SyncFileItem::EncryptionStatus::EncryptedMigratedV1_2 : SyncFileItem::EncryptionStatus::NotEncrypted);
     item->_locked =
         properties.value(QStringLiteral("lock")) == QStringLiteral("1") ? SyncFileItem::LockStatus::LockedItem : SyncFileItem::LockStatus::UnlockedItem;
     item->_lockOwnerDisplayName = properties.value(QStringLiteral("lock-owner-displayname"));
diff --git a/src/libsync/syncfileitem.h b/src/libsync/syncfileitem.h
index 4715901ab..f888ec6d4 100644
--- a/src/libsync/syncfileitem.h
+++ b/src/libsync/syncfileitem.h
@@ -46,6 +46,13 @@ public:
     };
     Q_ENUM(Direction)
 
+    enum class EncryptionStatus : int {
+        NotEncrypted = 0,
+        Encrypted = 1,
+        EncryptedMigratedV1_2 = 2,
+    };
+    Q_ENUM(EncryptionStatus)
+
     // Note: the order of these statuses is used for ordering in the SortedActivityListModel
     enum Status { // stored in 4 bits
         NoStatus,
@@ -138,7 +145,6 @@ public:
         , _status(NoStatus)
         , _isRestoration(false)
         , _isSelectiveSync(false)
-        , _isEncrypted(false)
     {
     }
 
@@ -228,7 +234,7 @@ public:
             && !(_instruction == CSYNC_INSTRUCTION_CONFLICT && _status == SyncFileItem::Success);
     }
 
-    [[nodiscard]] bool isEncrypted() const { return _isEncrypted; }
+    [[nodiscard]] bool isEncrypted() const { return _isEncrypted != SyncFileItem::EncryptionStatus::NotEncrypted; }
 
     // Variables useful for everybody
 
@@ -275,7 +281,7 @@ public:
     Status _status BITFIELD(4);
     bool _isRestoration BITFIELD(1); // The original operation was forbidden, and this is a restoration
     bool _isSelectiveSync BITFIELD(1); // The file is removed or ignored because it is in the selective sync list
-    bool _isEncrypted BITFIELD(1); // The file is E2EE or the content of the directory should be E2EE
+    EncryptionStatus _isEncrypted = EncryptionStatus::NotEncrypted; // The file is E2EE or the content of the directory should be E2EE
     quint16 _httpErrorCode = 0;
     RemotePermissions _remotePerm;
     QString _errorString; // Contains a string only in case of error
@@ -321,6 +327,8 @@ public:
     bool _sharedByMe = false;
 
     bool _isFileDropDetected = false;
+
+    bool _isEncryptedMetadataNeedUpdate = false;
 };
 
 inline bool operator<(const SyncFileItemPtr &item1, const SyncFileItemPtr &item2)
diff --git a/src/libsync/updatefiledropmetadata.cpp b/src/libsync/updatefiledropmetadata.cpp
index 0d23f2f70..02103a093 100644
--- a/src/libsync/updatefiledropmetadata.cpp
+++ b/src/libsync/updatefiledropmetadata.cpp
@@ -122,8 +122,10 @@ void UpdateFileDropMetadataJob::slotFolderEncryptedMetadataReceived(const QJsonD
     qCDebug(lcUpdateFileDropMetadataJob) << "Metadata Received, Preparing it for the new file." << json.toVariant();
 
     // Encrypt File!
-    _metadata.reset(new FolderMetadata(propagator()->account(), json.toJson(QJsonDocument::Compact), statusCode));
-    if (!_metadata->moveFromFileDropToFiles()) {
+    _metadata.reset(new FolderMetadata(propagator()->account(),
+                                       FolderMetadata::RequiredMetadataVersion::Version1,
+                                       json.toJson(QJsonDocument::Compact), statusCode));
+    if (!_metadata->moveFromFileDropToFiles() && !_metadata->encryptedMetadataNeedUpdate()) {
         unlockFolder();
         return;
     }
diff --git a/test/testfolderman.cpp b/test/testfolderman.cpp
index 2cd2afd49..db9b7d40a 100644
--- a/test/testfolderman.cpp
+++ b/test/testfolderman.cpp
@@ -123,7 +123,7 @@ private slots:
         // the server, let's just manually set the encryption bool in the folder journal
         SyncJournalFileRecord rec;
         QVERIFY(folder->journalDb()->getFileRecord(QStringLiteral("encrypted"), &rec));
-        rec._isE2eEncrypted = true;
+        rec._isE2eEncrypted = SyncJournalFileRecord::EncryptionStatus::EncryptedMigratedV1_2;
         rec._path = QStringLiteral("encrypted").toUtf8();
         rec._type = CSyncEnums::ItemTypeDirectory;
         QVERIFY(folder->journalDb()->setFileRecord(rec));
diff --git a/test/testsecurefiledrop.cpp b/test/testsecurefiledrop.cpp
index 33653b800..dd0a6ac00 100644
--- a/test/testsecurefiledrop.cpp
+++ b/test/testsecurefiledrop.cpp
@@ -69,8 +69,8 @@ private slots:
                     QFile fakeJsonReplyFile(QStringLiteral("fakefiledrope2eefoldermetadata.json"));
                     if (fakeJsonReplyFile.open(QFile::ReadOnly)) {
                         const auto jsonDoc = QJsonDocument::fromJson(fakeJsonReplyFile.readAll());
-                        _parsedMetadataWithFileDrop.reset(new FolderMetadata(_fakeFolder.syncEngine().account(), jsonDoc.toJson()));
-                        _parsedMetadataAfterProcessingFileDrop.reset(new FolderMetadata(_fakeFolder.syncEngine().account(), jsonDoc.toJson()));
+                        _parsedMetadataWithFileDrop.reset(new FolderMetadata(_fakeFolder.syncEngine().account(), FolderMetadata::RequiredMetadataVersion::Version1_2, jsonDoc.toJson()));
+                        _parsedMetadataAfterProcessingFileDrop.reset(new FolderMetadata(_fakeFolder.syncEngine().account(), FolderMetadata::RequiredMetadataVersion::Version1_2, jsonDoc.toJson()));
                         [[maybe_unused]] const auto result = _parsedMetadataAfterProcessingFileDrop->moveFromFileDropToFiles();
                         reply = new FakePayloadReply(op, req, jsonDoc.toJson(), nullptr);
                         ++_getMetadataCallsCount;