About "Unencrypted database" warning and preload.json file

My understanding is that no, you cannot delete the preload file, as Duplicati needs to be able to read the encryption key every time it starts:

As an alternative to providing the plaintext of the key in the preload file, you could use one of the new secret providers and substitute the key in. For example, I’m using the Windows Credential Manager as my provider, and my preload file looks like this:

{
    "env": {
        "*": {
            "SETTINGS_ENCRYPTION_KEY": "$duplicati-settings-key"
        }
    },
    
    "args": {
        "*": [ "--secret-provider=wincred://" ]
    }
}
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