Is trader chat saved?

Is it currently the case that potentially every person you have traded with will have your data stored on their local machine unencrypted?

Yes, all Info of trade partner is unencrypted saved in plaintext forever. Not only limited to trader chat messages but also all account data and transaction ids and btc addresses used for trading. Bank account details, full name. I have opened \Bisq\btc_mainnet\db\ClosedTrades and found every trade from last years bank account number, email, telephone numbers of trade partners in plaintext. That is to give you view how it looks like, but you can always see yourself. Nothing special required. Notepad could even recover trade peers personal details. All sensitive information replaced with XXXCENSORED_XXX for reasons.

SEPA���������:�
>XXXCENSORED_BANK COUNTRY CODE_XXX"�
XXXCENSORED_Full name_XXXeXXXCENSORED_IBAN_XXXXXXCENSORED_bic_XXX*AT*BE*BG*CH*CY*CZ*DE*DK*EE*ES*FI*FR*GB*GR*HR*HU*IE*IS*IT*LI*LT*LU*LV*MC*MT*NL*NO*PL*PT*RO*SE*SI*SKzH
salt@XXXCENSORED_XXX*XXXCENSORED_btcADRESS_XXX"�#{
  "offerPayload": {
"id": "XXXCENSORED_TRADEID_XXX",
"date": XXXCENSORED_TIMESTAMP_XXX,
"ownerNodeAddress": {
  "hostName": "XXXCENSORED_XXX.onion",
  "port": 9999
},
"direction": "BUY",
"price": 0,
"marketPriceMargin": 0.005,
"useMarketBasedPrice": true,
"amount": 700000,
"minAmount": 300000,
"baseCurrencyCode": "BTC",
"counterCurrencyCode": "CHF",
"arbitratorNodeAddresses": [],
"mediatorNodeAddresses": [
  {
    "hostName": "apbp7ubuyezav4hy.onion",
    "port": 9999
  },
  {
    "hostName": "a56olqlmmpxrn5q34itq5g5tb5d3fg7vxekpbceq7xqvfl3cieocgsyd.onion",
    "port": 9999
  },
  {
    "hostName": "sjlho4zwp3gecspf.onion",
    "port": 9999
  }
],
"paymentMethodId": "SEPA",
"makerPaymentAccountId": "XXXCENSORED_XXX",
"offerFeePaymentTxId": "XXXCENSORED_XXX",
"countryCode": "XXXCENSORED_BANKCC_XXX",
"acceptedCountryCodes": [
  "AT",
  "BE",
  "BG",
  "CH",
  "CY",
  "CZ",
  "DE",
  "DK",
  "EE",
  "ES",
  "FI",
  "FR",
  "GB",
  "GR",
  "HR",
  "HU",
  "IE",
  "IS",
  "IT",
  "LI",
  "LT",
  "LU",
  "LV",
  "MC",
  "MT",
  "NL",
  "NO",
  "PL",
  "PT",
  "RO",
  "SE",
  "SI",
  "SK"
],
"bankId": "XXXCENSORED_XXX",
"versionNr": "1.5.3",
"blockHeightAtOfferCreation": XXXCENSORED_XXX,
"txFee": XXXCENSORED_XXX,
"makerFee": 5000,
"isCurrencyForMakerFeeBtc": true,
"buyerSecurityDeposit": 600000,
"sellerSecurityDeposit": 600000,
"maxTradeLimit": 1000000,
"maxTradePeriod": XXXCENSORED_XXX,
"useAutoClose": false,
"useReOpenAfterAutoClose": false,
"lowerClosePrice": 0,
"upperClosePrice": 0,
"isPrivateOffer": false,
"extraDataMap": {
  "capabilities": "0, 1, 2, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16",
  "accountAgeWitnessHash": "XXXCENSORED_XXX"
},
"protocolVersion": 3
  },
  "tradeAmount": 300000,
  "tradePrice": XXXCENSORED_XXX,
  "takerFeeTxID": "XXXCENSORED_XXX",
  "buyerNodeAddress": {
"hostName": "XXXCENSORED_XXX.onion",
"port": 9999
  },
  "sellerNodeAddress": {
"hostName": "XXXCENSORED_XXX.onion",
"port": 9999
  },
  "mediatorNodeAddress": {
"hostName": "sjlho4zwp3gecspf.onion",
"port": 9999
  },
  "isBuyerMakerAndSellerTaker": true,
  "makerAccountId": "XXXCENSORED_XXX",
  "takerAccountId": "XXXCENSORED_XXX",
  "makerPaymentAccountPayload": {
"holderName": "XXXCENSORED_XXX",
"iban": "XXXCENSORED_XXX",
"bic": "XXXCENSORED_XXX",
"email": "",
"acceptedCountryCodes": [
  "AT",
  "BE",
  "BG",
  "CH",
  "CY",
  "CZ",
  "DE",
  "DK",
  "EE",
  "ES",
  "FI",
  "FR",
  "GB",
  "GR",
  "HR",
  "HU",
  "IE",
  "IS",
  "IT",
  "LI",
  "LT",
  "LU",
  "LV",
  "MC",
  "MT",
  "NL",
  "NO",
  "PL",
  "PT",
  "RO",
  "SE",
  "SI",
  "SK"
],
"countryCode": "XXXCENSORED_XXX",
"paymentMethodId": "SEPA",
"id": "XXXCENSORED_XXX",
"maxTradePeriod": -1
  },
  "takerPaymentAccountPayload": {
"holderName": "XXXCENSORED_XXX",
"iban": "XXXCENSORED_XXX",
"bic": "XXXCENSORED_XXX",
"email": "",
"acceptedCountryCodes": [
  "AT",
  "BE",
  "BG",
  "CH",
  "CY",
  "CZ",
  "DE",
  "DK",
  "EE",
  "ES",
  "FI",
  "FR",
  "GB",
  "GR",
  "HR",
  "HU",
  "IE",
  "IS",
  "IT",
  "LI",
  "LT",
  "LU",
  "LV",
  "MC",
  "MT",
  "NL",
  "NO",
  "PL",
  "PT",
  "RO",
  "SE",
  "SI",
  "SK"
],
"countryCode": "XXXCENSORED_XXX",
"paymentMethodId": "SEPA",
"id": "XXXCENSORED_XXX",
"maxTradePeriod": -1
  },
  "makerPayoutAddressString": "XXXCENSORED_XXX",
  "takerPayoutAddressString": "XXXCENSORED_XXX",
  "lockTime": 669272,
  "refundAgentNodeAddress": {
"hostName": "3z5jnirlccgxzoxc6zwkcgwj66bugvqplzf6z2iyd5oxifiaorhnanqd.onion",
"port": 9999
  }
}*@