Security issue with Files integration?

Sorry to ask if that question has already been asked. I saw that when I open a picture from my Vault in the Files app, it - logically - downloads and then I can view it. But when I locked and unlocked my vault again, the cloud symbol on the picture was still gone and I could still see the preview, meaning the picture was still locally on my iPhone even when my vault was locked. This seems like a huge security issue to me. Can you tell me where files that I open in the Files app are downloaded to? How is the encryption ensured when it’s downloaded? And why is my file still stored locally when I lock my vault? Or am I misunderstanding something?

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