Can UBCD diagnose encrypted hard drives and solid state drives?
Encrypted, yes. It's not scanning the data; it's checking the physical condition of the drive.

SSD, no. You can use CrystalDiskInfo to check the general SSD condition, but it would be best to run the manufacturer's SSD tools. Unfortunately, most are not bootable, so you'd have to run them from Windows. It would be best to slave the SSD into another system; diags over USB may or may not work.
https://www.pcsteps.com/2530-predict...tal-disk-info/