Inicializar el proyecto

npm init vite@latest dummy -- --template react

cd dummy

npm install

Instalar crypto-js

npm i crypto-js

Creación de función encriptar

const encryptStorage = (name, data) => {
  const encrypt = CryptoJS.AES.encrypt(
    JSON.stringify(data),
    secretKey,
  ).toString()

  localStorage.setItem(name, encrypt)
}

Creación función desencriptar

const decryptStorage = (name) => {
  const encrypt = localStorage.getItem(name)

  const decrypt = CryptoJS.AES.decrypt(encrypt, secretKey).toString(
    CryptoJS.enc.Utf8,
  )

  setRes(JSON.parse(decrypt))
}

Código final

import CryptoJS from 'crypto-js'
import { useState } from 'react'

function App() {
  const secretKey = 'tu secret key'
  const data = { nombre: 'gabriel' }
  const [res, setRes] = useState([])

  const encryptStorage = (name, data) => {
    const encrypt = CryptoJS.AES.encrypt(
      JSON.stringify(data),
      secretKey,
    ).toString()

    localStorage.setItem(name, encrypt)
  }

  const decryptStorage = (name) => {
    const encrypt = localStorage.getItem(name)

    const decrypt = CryptoJS.AES.decrypt(encrypt, secretKey).toString(
      CryptoJS.enc.Utf8,
    )

    setRes(JSON.parse(decrypt))
  }

  return (
    <div className="App">
      <div className="btn" onClick={() => encryptStorage('dummy', data)}>
        encriptar
      </div>
      <div className="btn" onClick={() => decryptStorage('dummy')}>
        desencriptar
      </div>

      {JSON.stringify(res)}
    </div>
  )
}

export default App;