Thanks for the explanation. I did delete the local file (I kept the local folder but AxCrypt just creates a new one) and then clear and restart. However, after logging back in and clicking on the AxCrypt encrypted file, it just created a new local folder and put an unencrypted file there. The “broom” does nothing and it just leaves the local unencrypted file in the local directory. I have put in an email to support.
FYI, AxCrypt is re-encrypting the file in my documents directory, but it is leaving a copy of the unencrypted file in the localapp directory.