1:1 calls are end-to-end encrypted by default [1] since WebRTC is encrypted [2] and the traffic is routed directly between the clients after initialization [3][4]. Group calls still rely on Jitsi [4] which is transport encrypted by default (so it's decrypted at the server). Jitsi supports optional E2EE in Browser and native Jitsi Client [5] but I think the Widget in Element does not support it.
[1] https://doc.matrix.tu-dresden.de/en/encryption/
[2] https://matrix.org/faq/#are-voip-calls-encrypted%3F