Add a flag to ProfileSyncService that says whether encrypting all data is allowed.

chrome/browser/resources/sync_setup_overlay.js

 // Copyright (c) 2012 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 cr.exportPath('options');
 
 /** @typedef {{appsEnforced: boolean,
  *             appsRegistered: boolean,
  *             appsSynced: boolean,
  *             autofillEnforced: boolean,
  *             autofillRegistered: boolean,
  *             autofillSynced: boolean,
  *             bookmarksEnforced: boolean,
  *             bookmarksRegistered: boolean,
  *             bookmarksSynced: boolean,
  *             encryptAllData: boolean,
+ *             encryptAllDataAllowed: boolean,
  *             enterGooglePassphraseBody: (string|undefined),
  *             enterPassphraseBody: (string|undefined),
  *             extensionsEnforced: boolean,
  *             extensionsRegistered: boolean,
  *             extensionsSynced: boolean,
  *             fullEncryptionBody: string,
- *             isSupervised: boolean,
  *             passphraseFailed: boolean,
  *             passwordsEnforced: boolean,
  *             passwordsRegistered: boolean,
  *             passwordsSynced: boolean,
  *             preferencesEnforced: boolean,
  *             preferencesRegistered: boolean,
  *             preferencesSynced: boolean,
  *             showPassphrase: boolean,
  *             showSyncEverythingPage: boolean,
  *             syncAllDataTypes: boolean,
@@ skipping 627 matching lines @@
       // Determine whether to bring the OK button field into focus.
       var wasCustomizePageHidden = !this.customizePageVisible_;
       this.customizePageVisible_ = true;
       this.confirmPageVisible_ = false;
 
       $('confirm-sync-preferences').hidden = true;
       $('customize-sync-preferences').hidden = false;
 
       $('sync-custom-passphrase-container').hidden = false;
       $('sync-new-encryption-section-container').hidden = false;
-      $('customize-sync-encryption-new').hidden = args.isSupervised;
+      $('customize-sync-encryption-new').hidden = !args.encryptAllDataAllowed;
 
       $('sync-existing-passphrase-container').hidden = true;
 
       $('sync-select-datatypes').selectedIndex = index;
       this.setDataTypeCheckboxesEnabled_(
           index == options.DataTypeSelection.CHOOSE_WHAT_TO_SYNC);
 
       // Give the OK button focus only when the dialog wasn't already visible.
       if (wasCustomizePageHidden)
         $('choose-datatypes-ok').focus();
@@ skipping 185 matching lines @@
 
   SyncSetupOverlay.showStopSyncingUI = function() {
     SyncSetupOverlay.getInstance().showStopSyncingUI_();
   };
 
   // Export
   return {
     SyncSetupOverlay: SyncSetupOverlay
   };
 });