Not a problem in itself. Also, there's not much point of encrypting tokens. The attacker could use the encrypted token to authenticate themselves without having to decrypt. They could just make a request from the victim's own browser. They could do this with cookies too even with httpOnly cookies.

XSS is a big problem. If a hacker can inject a script into your front end and make it execute, it's game over. Once they get to that point, there's an infinite number of things they can do. They basically own the user's account.

Does anyone actually encrypt the contents of JWTs? I'd have thought that anyone who has concerns about the contents of the token being easily visible would be likely to avoid JWTs anyway and just use completely opaque tokens?