VMware vSAN 7.x
VMware vSAN 8.x
No this feature is only supported with Enterprise and Enterprise plus license.
Yes stretched cluster are supported for this feature.
but the witness host in a vSAN stretched cluster does not participate in vSAN encryption. The witness host does not store customer data, only metadata, such as the size and UUID of vSAN object and components.
No the data will be preserved but A rolling reformat of all disk groups takes places as vSAN encrypts all data in the vSAN datastore.