Last week I wrote up a detailed description: https://www.googlecloudcommunity.com/gc/Apigee/Payload-encryption-with-JWE/m-p/408153/highlight/true...
Basically, JWE is a way to wrap encryption around anything. While "encrypted JWT" is a way to wrap encryption around a specific thing: a JSON payload.
Apigee can handle, with out of the box policies, encrypted JWT, with a variety of algorithms.
Apigee out of the box policies do not handle the general case JWE. For that, there is a Java callout, which handles specifically RSA-based encryption algorithms. If you want general-case JWE and non-RSA algorithms, there's no support for that currently in Apigee, though it is in the roadmap.
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