Disk Utility vs. FileVault for external drive encryption?

Yes, this is the case from MacOS 10.15 Catalina :sob::

Unfortunately not. There is literally no way to create an encrypted HFS+ volume from 10.15 Catalina onwards, even using diskutil cs.

No, encrypting/decrypting on the fly works for HFS+ volumes as well (ctrl-/right-clicking on the volume in the Finder and choosing Encrypt or Decrypt as appropriate). The catch is that to encrypt and keep it in the HFS+ format, you need to use a version of MacOS that supports creating encrypted HFS+ volumes – 10.14 Mojave or earlier.

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