Hello Bahador,
Yes, oxAuth supports encrypted JWE Authorization Request Object and I have closed Issue #91 because it was a very old issue.
https://github.com/GluuFederation/oxAuth/issues/91
I understand your concern about the "use=enc" attribute. oxAuth is using the same jwk for signing and for encryption. Although it is possible, it is recommended to generate a different set of keys one for signing and another for encryption. I will update the set of keys in server and client tests to use different keys for signing and encryption.
https://github.com/GluuFederation/oxAuth/issues/699
There is a tool to generate new sets of keys at:
https://github.com/GluuFederation/oxAuth/blob/master/Client/src/main/java/org/xdi/oxauth/util/KeyGenerator.java
Regards
Javier