Github #34 reported that it wasn't possible to playback an encrypted stream using Safari or VLC on a Mac.
Reproducing the info in that ticket here for posterity, but this also needs fixing.
created encrypted parts using
hls-stream-creater.sh -i ./small.mp4 -e -s 10 ./
it created successfully but now its not playing.
m3u8 file contents:
Developer tools in Safari simply reports Failed to load resource: Plug-in handled load
Investigation details are provided in comments below, but the root cause has boiled down to the keyfile not being in quotes.