Error restoring encrypted disk using Disk Utility
The outcome you're seeing is probably a (security) feature, not a bug. I would think that Disk Utility would prompt for a password to enable access to the encrypted drive before allowing it to be read in order to perform the restore. Before attempting the restore use the Terminal command string "diskutil corestorage unlockVolume UUID -stdinpassphrase" followed by the password to unlock the drive then see if your restore runs to completion.