To paraphrase one of the axioms used to understand catastrophic failure.
If you strengthen steel to keep it from bending when mishandled, you may cause it to snap when hit with a stronger force. Making a simple problem like a bent nail into a dangerous problem like a flying shard of metal in the eye.

What is our metaphorical eye protection?

Does this system inject a wholesale failure in a problem that should just be modular encryption.

The worst failure of the system would be if by decrypting one item the whole key mechanism is breached.