True or False?

Comprehensive and Detailed In-Depth Explanation:

False. When a transit encryption key is rotated in Vault (e.g., via vault write -f transit/keys//rotate), the new key version becomes the default for future encryptions, but data encrypted with previous versions remains decryptable without rewrapping or re-encryption. Vault maintains a keyring with all versions, and the ciphertext prefix (e.g., vault:v1:) indicates which version was used, allowing automatic decryption with the corresponding key. This seamless handling simplifies key management and avoids mandatory data re-encryption post-rotation. Only if you set a min_decryption_version to archive older keys would rewrapping be needed, but that’s optional, not default behavior.

Option A is incorrect per Vault’s Transit documentation, which notes that old data can still be decrypted without immediate action after rotation.