The only issue with it is that it allows attackers to determine that a given person has an account on a site. Which if the site is pornhub or similar, could be embarrassing (try sign up to pornhub with your local politicians email).

The way around this is to do something like:

"We need to verify your email is correct, by sending you a code"

This doesnt tell the attacker anything, but if there already is an account, the email itself can just say "You already have an account, here are the links to reset and login".

Side note: encryption is reversible, hashing is not. Passwords should be stored hashed, but email only need to be encrypted (or plaintext, but less ideal). And because its reversible, they can get the original value back. They cannot reverse a hash to get the password back, so if a site ever tells you info about your password, that is a sign they might not be hashing it correctly.