Android 10+ (as well as iOS) has encryption by default, so databases don’t need to provide encryption features themselves anymore. See this article for further details about the deprecation of Encrypted Shared Preferences.
We had this rule under our radar, and we planned its deprecation, both for Kotlin and Java. We just could not do it yet.
While waiting for the deprecation of the rule to be done and released, you can mark all issues detected by this hotspot as Safe, or remove the rule from your profile, if it is really noisy.