Encrypting Replication flow

[Initially Posted in Security Forum, posting it here for a better response]

I am trying to encrypt replication flow, in two different ways:

1) In both Log Reader Agent Job and Distribution Agent Job added parameter "EncryptionLevel". On checking sys.dm_exec_connections, I see column encrypt_option as "TRUE". This makes me believe it works!

2) Create a new Agent Profile for both Log Reader and Distribution Agent, add parameter "EncryptionLevel" in addition to all default parameters. Make these profiles as default. Restart all agent jobs again. If I query sys.dm_exec_connections, to my surprise, column encrypt_option is "FALSE". 

Why is this behavior strange. Can experts out in the community help me?

Thanks,

Lokesh Vij