Working with Documents feature of 1P

I am confused about how the documents function is supposed to work.

This is what I did:
1. In 1P, click File > New Item > Document
2. Select a test document on the Desktop

What I would expect to happen:
1. A new document item is created in 1P by moving the original into 1P.
2. The original document is deleted because it has been moved.
3. The new item is encrypted inside 1P.
4. The new item is viewable inside 1P.
5. The new item can be downloaded from 1P and is decrypted in the process.

What actually happens.
1. A new document item is created in 1P
2. The original document remains where it was. (Of course, it would be possibly safer not to delete the original, but adds extra steps because the user has to delete the item because there is no good use case for duplication of items.)
3. Not sure what is really happening with the encryption. There is a "Show in Finder" function. When I use that to see where the new 1P item is stored, navigate to that item, and inspect it, I find that it is actually in plain text. No encryption. If I close 1P, the item is still in plain text.
4. There is a function called "Delete Local Copy". I was thinking that might be to delete the original. But that is not what it does. Maybe it has to do with viewing the Document inside 1P, and then getting rid of the decrypted, viewed item. But that seems like something that should not be necessary or should be automatic. I never have to delete any local copies when viewing any other 1P item, such as a login or secure note. And I am not sure if "Delete Local Copy" is actually even doing anything, let alone anything useful.

So I do not understand the following:
1. What is the benefit of "copying" documents into 1P rather than "moving" them?
2. Does 1P actually encrypt documents? It appears not.
3. Does "Delete Local Copy" have any purpose? Not sure what that is.

I could use 1P to streamline workflows if I understood these things better.

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1Password Version: 7.9.2
Extension Version: Not Provided
OS Version: 10.15.7