Ah I hadn’t thought of cloud transfers, that’s not something I engage in often and when I do I usually need compression. In such cases I usually use an encrypted archive (i.e. 7zip).
It seems AxCrypt v1 and AxCrypt v2 are designed for different use cases.
You must be misunderstanding what AxCrypt is for. It goes without saying that AxCrypt will readily decrypt on-demand as that’s what it’s designed for! If you are worried about a criminal hacking your computer then not even BitLocker can protect you. All BitLocker data is decrypted at boot and a hacker need decrypt nothing.
I used AxCrypt to protect me from this very fact, in AxCrypt v1 files could not be decrypted without your password (unless you told it to store the password). I can see AxCrypt being very useful for encryption of files uploaded to DropBox, OneDrive, etc.
Bitlocker (or other FDE) is like locking down a building at night but AxCrypt was like locking my office door behind me and only unlocking it when I needed it open.
GPG4Win is supposed to be adding symmetric encryption to their UI with version 3.0 which should fill this gap nicely. In the meantime it seems one could use the command line to encrypt the files and use the UI to access them.