Homeserver owners can join encrypted chats technically. They would have to impersonate users by adding their own device key to the targeted user account. This is a bug that is being mitigated in 2026 by requiring users to confirm new devices added to their account
https://element.io/blog/verifying-your-devices-is-becoming-mandatory-2/. Note users will be notified that a new device was added, and they should not validate it to avoid having messages sent to it.