Earlier quoted context omitted.
It would be better to store all the Client Secrets in such a Secrets Manager right? Or should I create an encryption key per user and store that in the Secrets Manager?
Best practice is to do envelope encryption where you encrypt the data with one key, then you encrypt that key with another (hence envelope). That allows you to routinely rotate the outer key without having to laboriously re-encrypt the actual data. Whether you use one envelope key or one data key per client, one data key for all, or one envelope key for all is really a judgement call and depends on how paranoid you w…
Specifically I would think the decrypted data key is derived from the encryption key.