Normally “Host” is unecrypted when connecting to a server. Using VPN is one way of hiding it from ISP.
Does the Cloudflare app hide this field from ISPs as well?
SNI and ESNI are terms which you should read about. For example this Encrypting SNI: Fixing One of the Core Internet Bugs
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The current 1.1.1.1 app is a DNS VPN for looking up DNS entries securely using Cloudflare’s public resolver. Any connection by your client uses whatever connection it normally would.