It's encryption both at rest and on transit. At rest there are levels of encryption, at object level or at filesystem level. E2ee for immich would mean the objects are encrypted and transmitting the data is encrypted. If the scenario is the server is stolen, you need encryption at rest. Even at FS level is enough.

Not sure why you're continuing to argue, GP's right.

e2ee means that the encryption keys are stored client-side by the intended recipient. It's not just in transit and in rest.