Encrypting local copies of shared files and synchronizing

Hi,

I understand that encryption of the local copy of Dropbox files is my responsibility.

For various reasons, I do not want to encrypt the entire PC with Bitlocker and a boot password. I am using VeraCrypt and encrypting only those chunks of data that are "sensitive".

I am using Dropbox to work with various clients. If I encrypt my local copies of the files and then synchronize them, my clients have to unencrypt (with VeraCrypt) and each client needs their own password! (A nightmare to manage... even if they would be willing.)

VeraCrypt works by having an encrypted volume (a file) that is mapped to an unencrypted folder with a drive letter (L:\, for example). The unencrypted folder 'vanishes' when the file is unmounted, and this happens automatically when I switch off the computer or log out.

I create unencrypted file-level backups by backing up the unencrypted mounted folder to a (separately) encrypted location. Can I do the same with Dropbox?

To clarify:

If I create a file with VeraCrypt and map it to a folder (D:\) and then set DropBox to synchronize with D:\ (assuming I can do this), how will the mounting and unmounting of this volume be reflected?  Will unmounting of D:\ (containing the local copies of DropBox files) be seen as having deleted them, so synchronization will delete them from the cloud side? Or will it just be seen as the drive not being available (as if it were a portable drive)? And conversely, if Dropbox starts first, will the absence of the mounted folder be an issue?

I can do some testing myself - but first will have to ask clients to unshare their files with me so things don't start synchronizing unexpectedly. I'm trying to avoid asking them to do that (and then reshare them afterwards) if people already know that this does not work.

Thanks in advance,

Alison