diff --git a/apps/files_encryption/lib/proxy.php b/apps/files_encryption/lib/proxy.php
index 51de8fc7e4143cfbc80f43d3da4659c4ff8e9987..126a593ee3cde7374477e20da48f441731b54125 100644
--- a/apps/files_encryption/lib/proxy.php
+++ b/apps/files_encryption/lib/proxy.php
@@ -51,11 +51,17 @@ class Proxy extends \OC_FileProxy {
 	 */
 	private function isExcludedPath($path, $uid) {
 
+		$view = new \OC\Files\View();
+
 		// files outside of the files-folder are excluded
 		if(strpos($path, '/' . $uid . '/files') !== 0) {
 			return true;
 		}
 
+		if (!$view->file_exists($path)) {
+			$path = dirname($path);
+		}
+
 		// we don't encrypt server-to-server shares
 		list($storage, ) = \OC\Files\Filesystem::resolvePath($path);
 		if ($storage instanceof OCA\Files_Sharing\External\Storage) {
diff --git a/config/.htaccess b/config/.htaccess
old mode 100644
new mode 100755