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Encryption on Nextcloud is a mess. Something about their update process is enormously fragile and its often pain to do (side note: I recently discovered there's a CLI updater, and that's definitely the way to go). I eventually just had to give up on E2EE and shut then whole thing off, which was also a pain because I kept running into errors. Fortunately everything is stored on my homelab and my users are all family so they don't care if I can see their files.
https://github.com/nextcloud/server/issues/24240
I really wish there was a high performance alternative with equally polished clients that didn't have all the enterprise "we need to make money" cruft.
Nextcloud has had too many longstanding bugs like the one that mangles metadata, breaks sync, and requires server side intervention to fix [1]. I don’t trust them to do normal sync anymore. There’s no way I’d take the risk of letting them encrypt my data.
They need to slow down on features before tech debt ruins their product (if it hasn’t already).
An alternative for file sharing: Seafile works for me quite well.
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