FDE is for physical attackers, it would have nothing to do with torrenting unless you're really intending on pissing off every single criminal legal authority and not just worried about civil suits from copyright holders.
Why would you need file encryption?
Not like having a drive full of movies is illegal...Except if OP has CSAM stuff inside. Than it should be very encrypted in case of loosing (or not depending if OP wants jail time).
Not like I don't agree. Those vile people should.
But something like that or actually confidential stuff you don't want others to see is a valid reason to encrypt it.
Holy shit yeah lol. Obviously nothing like that! I was confused as well why anything other than the generic Linux full disk encryption would be needed.
This would be in a server closet, so not on drives that I would be transporting copyrighted media into other countries anyways.
file or disk encryption is only for protecting against attackers with physical access to the machine your VM is running on. Getting files from your server to local storage you should still use a secure connection and encrypted traffic to prevent ISP snooping, but going extreme on file encryption isn't necessary unless you're downloading actual heinous shit (CSAM) in which case you should go to jail.