Email notifications
Emails are sent out by the notification scheme defined on the project.
Protected Fields can not control the notifications by its permission model, this means that if the notification schema is set to send out mails to Watchers, Assignee and Reporter and a Protected Fields is updated, then the mail will be sent out to the roles specified.
Email will then look like this if encrypted type is used.
Encrypted text
Workaround
If this is not desired then we recommend to disabled the notification in the notification scheme and use Automation instead.
To filter out Protected fields, add a new automation rule which listen to update for fields.