Ironically, encryption is not an important part of bitcoin (?)

The above statement is taken out of a book which I’ve been reading: Mastering Bitcoin 2nd Edition.

…as its communications and transaction data are not encrypted and do
not need to be encrypted to protect the funds…

Just started about bitcoin, going through the third chapter and when I come across the above lines, I merely struck by one question, and that is, if the communication happens between (peers’ / wallet to bitcoin network) is not encrypted…then I am just thinking a scenario

X is sending BTC to Z (obviously by mentioning Z’s address in txn)

Y (bad guy) cuts in the communication which is not encrypted (as per the above reading) and tampers the transaction that X has been sent ( by Just putting his address in beneficiary )

I mean, honestly, it is a very naive scenario that anyone could think of and I know there would be something in bitcoin (which I am not aware of) could prevent this from happening, so, giving clarification on how this kind of attacks being handled or mitigated in Bitcoin would be much helpful for this post.

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