No, that's not correct either. There is a switch dedicated to encryption on/off on the radios, but whether the radio honors it or not is based on the system policy set by the customer (the police or whoever owns it. There is no preference or default configuration, all the buttons on the radio are programmable and can be turned on or off or changed to give the operator more or less flexibility or capability, depending on the eventual application of the radio and the expected experience level of the end user.
Most of the systems that are "100% full-time encryption" on all talkgroups are making it mandatory via system policy, that's all. They could, as others do, just designate encrypted specific talk groups, like detectives, drug and SWAT ops be encrypted and everything else like fire and sewer ops in the clear. Then, they will still program the specific encrypted talk groups as strapped that way, but other channels can be in the clear or will use the switch to determine if encryption is needed in the opinion of the user.
As to how many, a LOT is the answer. Motorola is giving away basic RC4 encryption for free with new radio purchases, and charges if they need higher security (DES or AES), It's hard to say no to free!
Of course, Moto sends in the sales Droids and talks up system security and promotes it adding in a few lies and myths like it's harder to jam encryption, or it has better coverage, etc. and they easily dazzle the customers and usually convince them to order the encryption with their purchase.
Where I live (suburb of large city) the police are 100% encrypted except the state-police highway patrol system. Only fire dept. and public works traffic is in the clear. Some of the police agencies have a few delayed feeds of their channel's audio on Broadcastify, but not all. One or two suburban systems are in the clear but those are far-flung suburbs and they probably will be going to encryption next time they upgrade their radio hardware.