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"userdata\[your Steam account ID]\[the games AppID]\remote\".
Have a look in that folder. The AppID for Stellaris should be "281990".
You can not encrypt a file to hide it. You can set it to be hidden, but you can also have windows explorer show you all hidden files. If you want to hide a file, place it somewhere no one will look, best inside another file.
And no, I have opened ironman save files from myself (old ones) and other people (newer). None of them were encrypted.
Then the wikipage sure is wrong!
As I said I don't use Steam Cloud, and I don't want to activate it to test this. Whenever I do, it inevitably overwrites some of my saves and settings for some games, and I don't want to clean up that mess ever again. So I can only activate ironman by editing a non-ironman file to become ironman, and then it would still be a non-cloud save starting out not encrypted as usual.
It seems silly to me to require Steam cloud in the first place to activate ironman, and especially if as the wiki suggests you then get the choice to save to the cloud or not. But with that being the case here as is, it does not seem that far off that they would also encrypt files if saved to the cloud but not if saved locally... which seems equally silly to me.
Maybe if the OP does save to the cloud, and finds their files, they could check whether or not they are encrypted.
C:\Program Files (x86)\Steam\userdata\<YOUR STEAM ID>\281990\remote\save games