Earlier quoted context omitted.
Encryption takes time, and energy. I suspect they are trying to avoid adding latency to anything that’s not super sensitive.
Those final gasps of data while a vehicle is breaking up could be critical for understanding what went wrong with it. I can definitely see how missing out on the final milliseconds of telemetry because some encryption buffer wasn't full enough to trigger a frame or something would be unacceptable.
The happy-path telemetry tells you very little you didn't already know, but when something goes wrong, those last few bits before the transmitter went silent can make or break your analysis. Sitting on bits until you have enough to run a block through the cipher seems like a terrible idea, even if that's only a few microseconds.
Things happen mighty fast when you're trying to get data that might represent the structural collapse or propagation of a blast wave through the body of a hypersonic vehicle.