Slow encryption of large amount of files

Neither nor.
FUSE is just a virtual file system (Filesystem in Userspace). Its how your decrypted files are presented in windows file explorer (simple saying).
Encryption and decryption is done by cryptomator app.
Thus, you can have on machine 1 a volume type dokany, on machine 2 volume type FUSE and on machine 3 volumetype WebDAV configured. Does not matter. But most likely you will run into your out of memory problems an all machines with similar configuration and WebDAV.
Furthermore, WebDAV has limitation when it comes to big files and regarding the available space on your virtual file system. So I would recommend to use one of these third party filesystems anyway.

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