Yes. Repeaters are agnostic and simply pass what's put through them encrypted or not. In general regardless of the level of encryption (s2 for instance) it is recommended not to use except for locks and garage door stuff due to general overhead on the mesh. I mean let's face it, if someone is close enough to sniff your network they are close enough to see what light you just turned on through the window. S0 though is incredibly chatty and should be avoided when possible. In the case of your lock though I would leave it and eliminate it on everything else. Zooz 4-in-1's are notorius for killing meshes with just 2 with s0 enabled. The fact that you have so much going on tells me you're mesh is likely being flooded. Turn it off and I bet it will be a happy mesh 
I don't know if you've read this post but it still might help..
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