Update - Now the plot thickens. Turns out their environments (Dev, QA, Prod) are all multitenant as far as the DB server goes, each machine hosting 50+ databases for 50+ different applications.
In this MS article, (Configure SQL Server Database Engine for encryption - SQL Server | Microsoft Learn) it states:
"SQL Server uses a certificate from a trusted certification authority if available for encrypting login packets. If a trusted certificate isn't installed, SQL Server generates a self-signed certificate (fallback certificate) during startup and use that self-signed certificate to encrypt the credentials. This self-signed certificate helps increase security, but it doesn't protect against identity spoofing by the server. If the self-signed certificate is used, and the value of the ForceEncryption option is set to Yes, all data transmitted across a network between SQL Server and the client application is encrypted using the self-signed certificate."
You can force encryption from the server by setting ForceEncryption = yes in Network Settings.
Moreover, in post referenced above, Sam stated:
"It is best to configure and enable the Force Encryption option within SQL Server itself. Enabling Force Encryption causes all client connections to the SQL Server instance to use encryption without any special configuration required for each client. "
Since all clients connect to SQL via some MS technology, my read is that all connection methods, including OLE, ODBC, Native Client all support this functionality. i.e. You set encryption at the server and it does not break anything.
However, because of the complexity of this environment they are very concerned that this would break something.
You can force encryption from the client side by using “Encrypt=yes; TrustServerCertificate=no; in a connection string. They want to do this on an application by application basis. The question is, are there registry settings that can be added or used on the SQL Native Client that would enforce encryption in this manner. It would be easy if LFS & WF used a connection string, but that is not the case.