That is exactly what happens. Encryption on the protocol doesn’t do anything but hide what you’re downloading from your ISP. It doesn’t prevent someone from downloading the same torrent and matching your IP to it. That’s why people recommend that you use VPNs if you’re going to do this from your house.
I just mount a tablet in front of my radio and ignore all of the infotainment ‘features’. It’s just a bluetooth audio device.
Same thing with smartTVs, just ignore all of the ‘features’ trying to lure you into the data harvesting ecosystem and treat it as a dumb monitor.