Your data is only encrypted up to the exit vpn server. So you only hide your packets from the isp and maybe from a man in the middle attack at a public wifi like a hotel or coffee shop.
Nothing is anonymous on the internet unless you control both ends of the connection and strongly encrypt. Even with the data in the packet encrypted , the packets themselves can be traced and may reveal information about what you are doing. Specifically true if you don’t control both ends.
Fee for service , or even the free variants , VPN providers only provide misdirection at best. And some, many? Of the free vpn providers harvest your data and sell bits of the information.