Yea, we use a very expesnsive cloud service that per the contract is encrypted at rest and in transit. After 5yrs I happened to have a networking issue and did a packet capture on the stream... no encryption. So we approached them... "Encryption? No, we don't do that..." We explained that it was in the contract and they HAD to do that. So after 2 months they had to move us to a "Special" server and we were encrypted. I checked the packets again and we were at least encrypted in transit. A few months later we had another trouble ticket with them. One of their techs was working on it and explained how he logged in an edited the table raw to fix it. So I asked how he could do that if the data was encrypted. "Encryption? No, we don't do that..." ugh... so now we're supposedly "really" encrypted.
The problem with cloud services is they can lie cheat and steal with your data and there's nothing you can do about it. You can't verify it, you can't test it, and if anything happens to it you wouldn't have a clue. You're entirely at the mercy of the provider and as time goes on their internal staff can turn over, competence can wane, controls can get lax, and you'll have no idea any of that is happening.