Yes yours is instant since your Mac has an SSD and T2 chip so all data on it is encrypted always.
Any election you make in FileVault just adds and removes user keys from the trust chain so that happens basically instantly. However, when a FileVault credentialed user isn’t created, the system unlocks itself so the encryption door is always wide open.
The next time you restart, the system will notice that the first per-user key is now active and change the boot process so that the system won't unlock that storage and start the OS until your key unlocks the storage. Keep in mind, FileVault by default on APFS is all or nothing. When you unlock the storage, any account can read any files it has permission and you need your password to keep other users (guests) off your files and session.
You can inspect this by looking at diskutil apfs list
to examine each APFS containers and synthesized volume encryption and lock status.
mac:~ me$ diskutil list
/dev/disk0 (internal):
#: TYPE NAME SIZE IDENTIFIER
0: GUID_partition_scheme 251.0 GB disk0
1: EFI EFI 314.6 MB disk0s1
2: Apple_APFS Container disk1 250.0 GB disk0s2
/dev/disk1 (synthesized):
#: TYPE NAME SIZE IDENTIFIER
0: APFS Container Scheme - +250.0 GB disk1
Physical Store disk0s2
1: APFS Volume Mac 191.7 GB disk1s1
2: APFS Volume Preboot 65.4 MB disk1s2
3: APFS Volume Recovery 1.0 GB disk1s3
4: APFS Volume VM 3.2 GB disk1s4
Be sure to restart your machine and test the guest session scenario again. Only a full “Guest account” that’s set up in user preferences will keep your data marginally protected when you have an unlocked / unencrypted synthesized Macintosh HD boot / OS / user volume.
diskutil cs list
ordiskutil apfs list
to know if the conversion is still happening in the background.