ConfD should encode the response properly, so if you are asking about NETCONF or XML response for a REST/RESTCONF request, then yes, ConfD will encode it. There is no reason to encode it for e.g. JSON-formatted response.
ConfD should encode the response properly, so if you are asking about NETCONF or XML response for a REST/RESTCONF request, then yes, ConfD will encode it. There is no reason to encode it for e.g. JSON-formatted response.