Encrypt v Protect and Sending for e-signature

Hello, I want to password-protect a file before sending for e-sign.
"Request e-signatures" function then greys out the moment I use either the "Protect with Password" or "Encrypt with Password".
So does it mean once I add some form of password to the pdf, requesting e-signatures becomes impossible?

Also, if I use "Encrypt with Password" function, does this mean recipients of the pdf would still need to input a password to open the file, if I check "Require a password to open the document"?

Somehow, I managed to send my password-encypted file earlier for e-sign. The signed file also came back encrypted: how I know is because when I tried to print, I got the error "this PostScript file was created from an encrypted PDF file". Does this mean that only the designated recipients of the file (i.e., the e-signatories) can open, view and sign my file?

Thank you.