The legs nearest you are the ones with published documentation, and Microsoft's Direct Routing is a clear case. It connects Teams to a telephone carrier through a session border controller, or SBC, that the customer supplies. Microsoft's planning guide requires SIP over TLS for signaling and SRTP for audio between that SBC and Teams, along with a trusted certificate on the SBC. The same guide lists "one or more PSTN trunks connected to the SBC" as a separate requirement. Microsoft's encryption rules cover the Teams side of the SBC. The trunk on the other side is arranged between you and your carrier.
Atlantech Online, a carrier that sells Teams calling, states the boundary on its own network. Its Operator Connect page says the company encrypts calls inside its network and that "voice signaling and media remain encrypted until the call exits to the PSTN." For its government cloud service, Atlantech's FAQ on end-to-end encryption is more specific. Calls to outside numbers are protected by TLS on the signaling path and SRTP on the media path between the Teams client and the SBC. Past that point, the FAQ says, the encryption chain "breaks at the SBC gateway" as the call moves to the traditional telephone network.
On this route, the reason is the SBC's role. It is one end of the encrypted Teams session, so it holds the keys and decrypts the call in order to pass it on. What happens after the SBC depends on the next link. It may be another IP connection, encrypted or not, or it may be a circuit. Knowing how your own leg is protected doesn't tell you how the rest of the path is.
Suppose a manager on Teams calls a client's mobile number. Microsoft says network communications in Teams are encrypted by default with TLS and SRTP, so the leg from the laptop to Microsoft is covered. If Atlantech is the company's Operator Connect carrier, Atlantech says the call stays encrypted inside its network until the PSTN handoff. From there it passes to the client's mobile provider, directly or through other carriers. Each of those hops has its own arrangement, and the manager has no view of any of them.
We trace the same path, with its signaling, in how the PSTN works. The choice between a customer-run SBC and a carrier-run one is covered in Direct Routing versus Operator Connect.