yes, the sender and the recievers email clients are doing the encrypting and decrypting of the .asc file. what email client are you using?

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I’m using Outlook and ProtonMail

outlook doesnt support pgp unless you have another external app to decrypt asc file

So .asc is the actual file that is used for encryption and decryption

yes basicly youre sending .asc file as attachment (whoever look into your message cant see whats inside the asc file) untile your recieve and decrypt it