Honestly, don't use encryption. We never should've added it to wyUpdate. Because of the nature of the encryption (that is, the update package must be decrypted to be installed) the customers will all have the decryption keys. Which defeats the purpose.
If you want to limit updates to specific customers then use licensing. See: How to prevent or limit updates.
P.S. The answer to your question is that you're not decrypting the update file. Hence the error. But still -- don't use the encrypted updates features.