In this case with the, I believe it’s called quantum tunneling by mullvad, it’s actually a good thing. Because the encapsulation protocol is just UDP/IP, a well established existing protocol that can masquerade as any kind of internet traffic easily.

Makes it difficult to block by censors. Great video I saw here: https://youtu.be/pZiG8r-diTM?si=wy35elqMt1T6euq0

This also means wg is just doing one thing instead of a dozen it doesn’t “need” to.