s-nail not decrypting netrc.gpg file?

Question

I set up msmtp and s-nail to work with my gmail account. It works if the password is stored in plain text in .netrc, but does not work with .netrc.gpg:

echo 'Message body' | mailx -A mymail --subject='A subject' email@address 'name <email@address>'

Here is the error message:

email@address requires a password: 
mail: A password is necessary for smtp authentication
/home/myuser/mail/dead.mbox 3/49
mail: ... message not sent

My .mailrc config:

account mymail {
   # Localize options, forget them when changing the account
   localopts yes
  
   ####
   # this part does not work with netrc.gpg, only plain netrc:
   wysh set netrc-lookup # even if I comment this line
   netrc-pipe='gpg -qd ~/.netrc.gpg'
   ####

   set mta=smtp://smtp.gmail.com:587 smtp-use-starttls # only works if I specify user:pass@ ahead of smtp.gmail
   set from="name <email@address>"
}

I encrypted my .netrc file for email@address with:

gpg -e /home/myuser/.netrc

and running this in terminal

gpg -qd ~/.netrc.gpg

works, however, this asks for the secret.

This is my netrc file:

machine *.gmail.com login NAME password PASS