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I’m actually in the process of trying out various attack vectors. I’m trying to find out if it’s actually possible to get access to everything besides /home as the Xperia 10 III doesn’t have any custom recoveries yet. About the encryption I’m not sure tho. I could try and also encrypt dalvik using the same LUKS encryption but im afraid that might break some things. At least the /home folder is fairly safe if you choose a strong enough password.
I found out that all app related android stuff is actually located in /home/.android/ so it seems your data is fairly secure - provided your encryption key is reasonably good. I also tried enabling Android Stock Encryption through the dalvik settings but Android Support just crashes when trying to enable that. Must be because Android is just translated and not emulated and the devs didn’t implement the encryption.