@alecxs After studying how FBE works, I've figured out that it is not possible to restore cloned encrypted data if you wipe /data partition from TWRP and reboot to reinitialise the OS because TEE regenerates new UserRootKey and FBE Class key which participates in decryption of FBEncrypted data.

Qualcomm has more clear technical explanation on FBE. qualcomm.com/media/documents/files/file-based-encryption.pdf (PDF)

TWRP has support for decrypting the partition for some devices to take backup.