Can data from a factory reset iPhone 14 be recovered if no passcode was set?

I know there have been various questions asked on this topic before, but I haven't seen a question that focused specifically on whether data from a factory reset iPhone could be recovered if **a passcode** was not used. Apple states on their website "Setting a passcode also **turns on data protection**, which encrypts your iPhone data with 256-bit AES encryption". (https://support.apple.com/en-gb/guide/iphone/iph14a867ae/ios) Therefore, if someone decided to not set a passcode on their iPhone and then reset their iPhone at a later date, would the data on their phone then be unencrypted and thus recoverable by a third party?