It appears that the decryption is performed as the rows are read from disk. Notice that data in rest(saved to disk) is only considered protected by TDE. Once in memory, the data is no longer protected by tde.
TDE and Decryption
TDE is designed to protect data at rest by encrypting the physical data files rather than the data itself. This level of protection prevents the data and backup files from being opened in a text editor to expose the file’s contents.
TDE encryption occurs prior to writing data to disk, and the data is decrypted when it is queried and recalled into memory. This encryption and decryption occurs without any additional coding or data type modifications; thus it’s transparency. Once the data is recalled from disk, into memory, it is no longer considered to be at rest. It has become data in transit, which is beyond the scope of this feature. As such, alongside TDE, you should consider applying additional supporting layers of protection to your sensitive data, to ensure complete protection from unauthorized disclosure. For example, you may wish to implement, in addition to TDE, encrypted database connections, cell-level encryption, or one-way encryption. For additional data in transit protection that is required, externally from the database, you may need to consult with, or defer to, your Network Administration team.