Free and open-source.
Receives regular software and kernel updates.
Avoids X11.
The notable exception is Qubes, but the isolation issues which X11 typically has are avoided by virtualization. This isolation only applies to apps running in different qubes (virtual machines), apps running in the same qube are not protected from each other.
Supports full-disk encryption during installation.
Doesn’t freeze regular releases for more than 1 year.
We recommend against “Long Term Support” or “stable” distro releases for desktop usage.
Supports a wide variety of hardware.
Preference towards larger projects.
Edit: I’m new to linux
Fedora, maybe?
Edit to make my point:
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It is free and open-source.
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Fedora has a rather fast release cycle. It offers new versions roughly every 6 months, along with regular package updates.
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Has been using Wayland by default since Fedora 25, so it aligns with your preference to avoid X11.
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Allows you to set up full-disk encryption.
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Doesn’t freeze its regular releases for more than a year.
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Supports a wide variety of hardware and aims to offer the latest kernel and drivers.
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It is a large project.
Also, not that it matters much, but it has a strong stance towards open-source software, not allowing closed software in its repositories. Although closed software can be installed by using RPMFusion
Notably openSUSE Tumbleweed is a distro that satisfies all requirements while not being named yet by others. Apart from it, only Arch and Fedora are worth mentioning as distros that also satisfy all requirements (as some others have already noted).
Those three crystallize more and more to be my favorite distros
(Have to try arch and Fedora yet, but what my friends have looks very good)
I’m of the opinion that systems and packages should be current and I find little to no merit in using a derived distro for myself. For this, the aforementioned three distros and NixOS are just plain superior over all the others IMO. NixOS was absent from my original comment due to how radically different it is compared to any other distro. But it’s definitely worth checking out if one is not scared of learning a thing or two.
NixOS is, if you can cope with a custom “config” language that you will have to use everywhere, your perfect fit.
Updates? Just switch to nixpkgs unstable
No x11? Just don’t install it
Encryption? Just use the config options
LTS? If you really want to, just stick to the fixed release channels and have a month of support after next release.
Hardware? Enormous hardware support range, although I don’t recommend you run it on a Raspberry pi 3b. (it almost exploded)
Preference towards larger projects? Ooooh yeah its a… gigantic project. And also not to mention nixpkgs is H U G E
LTS? Use the fixed release channels
NixOS doesn’t have LTS releases, the regular releases every six months get replaced by the next release and support stops a month later. So you still have to update every few months.
Ubuntu LTS in contrast promises up to 10 years of support for old LTS releases.
Arch.
Maybe EndeavourOS (a convenient installer for Arch) with a desktop that supports Wayland.
I run that with Gnome in Wayland mode on my desktop and with Sway (Wayland equivalent of i3) on my laptop and I’ve been very happy with that. You could also run KDE if you prefer
