if you or an attacker imports this wallet with the seed phrase on a different device, you'll have access to spend the funds on the wallet and set up a different password for the wallet on that device.
That's interesting. So as we say that the password protected wallet is encrypted, it is encrypted only if it remains on that particular system.
Z-tight is talking about importing the seed word phrase, not the encrypted wallet.
If someone copies that wallet file generated by the electrum and imports it into another computer, it will not remain encrypted???
That's not how encryption works.