Opening Files on Encrypted Images

[Huntn]

I keep sensitive documents related to accounts, finances, passwords on an encrypted sparse image on my MBP. In Catalina, once the word processor I'm using (Nisus Writer Pro) knows here this document is, if the image was locked, and I tried to open it as a recent doc in NWP, I would get a prompt that the location is locked with an opportunity to unlock the image.

Since I've upgraded to Monterey, this no longer happens and I just get a message that the document can't be opened.
Can I assume this is a bug, or just how Apple had decided to handle documents on encrypted images?
Thanks!

 

[GreenIcon]

I'm having the same problem. And I need to be able to use the dmg on both a Monterey OS computer and on computers running earlier OSes. Has anyone come up with a fix for this?