Stop encrypting when Terraform state encryption is disabled

Description

When Terraform state encryption is disabled, the system should stop encrypting new state files. However, existing encrypted files should remain in their current state and continue to be decrypted/encrypted as before to maintain compatibility.

Proposal

• Stop encryption when Terraform state encryption is disabled.
• Serve files in a streaming fashion when Terraform state encryption is disabled.
• Make sure existing encrypted files can still be read/written correctly.
• Add a feature flag for this