I think the process is called EFS and in most cases the encryption of the key used to encrypt the file by an asymmetric cipher but what I don't understand is how exactly the files are encrypted.
Now I'm not referring to text files specifically so it can be apps and such too so what does the encryption process actually work on? Can it access the source code for the files and encrypt that (but I don't think this is the case since the source code for most files isn't freely available) or does it just encrypt the file names (but still this would be easy to brute force through given that most filenames are short and names of extensions are limited)?