Offline pCloud folder is not accessible offline from Cryptomator

I conncected Cryptomator Android app to pCloud app. I told pCloud to make the encrypted folder available offline. But if I disconnect from internet, Cryptomator says it cannot access anything inside it.

Is that correct?

As a workaround, I always keep a local copy of the encrypted folder.

Yes, this is correct.
See here: Is it possible to have Cryptomator for Android with Onedrive files working offline? - #3 by infeo