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Pub 908 Bankruptcy Tax Guide & Pub 4681 Canceled Debts & Etc.

A necessity for any computer with data or information other than your own (and really, for all computers these days). It is a reasonable protection step which, if ignored, can be used against you if there is a breach. At least with the editions of Windows I use, it is "baked" in and seamless. The other encryption to be aware of is to encrypt your backups before they go to other media or the cloud. Do not rely on the backup service to encrypt for you. In other words, you handle the encryption first, using your own key, then upload or copy to storage.

I've changed my backup drive to a second drive because my C drive is smallish (SSD) and haven't had any problems. It is supposed to work in later versions (after 2013), but I haven't tried it. You should really encrypt all of your drives. That's what we do and it's almost invisible to us. Just an extra password when booting.

From a support perspective (if you ever want a reasonable chance at receiving support), let software install and use the folders the maker determines work best for their software. Makers have reasons for selecting the folders they do. When you elect to use something else, you are "on your own" in most cases. If you are looking for security with the encryption, with a current computer, running encryption on all drives is not a huge burden. If encryption is desired, encrypt all, since not doing so may miss something on the raw drive you were not aware of.