AirTag location history encryption and accessibility

I have a question if AirTag location history is encrypted and even Apple is unable to access because said encryption how is it that we are able to see the location history of all unknown AirTags that are traveling with us?? Seems to me every single AirTag is probably moving with someone who is not known for a good portion of its life. ie. Anytime you’re taking public transportation, or just walking in the same direction on the sidewalk with someone with an iPhone. Does that mean it’s becomes unencrypted when it’s traveling with an unknown (most of the time) . Just curious did not see this brought up anywhere else.

[Re-Titled by Moderator]