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Thanks for a long and interesting discussion. As a summary, for future viewers, I’d like to summarize and insist on the following, which fully explains all behavior:
– V1 “Keep Time Stamp” only has effect when encrypting a file for the first time. Only. Not otherwise.
– V2 and V1 has the exact same behavior when opening already encrypted files regardless of V1 “Keep Time Stamp” setting, except…
– …for the special case where V2 opens a V1 file, and causes an automatic re-encryption to V2 thus updating the encrypted file time stamp.