They are selling Balconies on deck 15 forward where the Observation lounge is now for my Alaska Cruise in August of 2025. Looks like they will indeed be reducing the Observation Lounge.
The Norwegian Encore dailies state "DRESS CODE: Resort casual (tank tops and baseball caps are not permitted) Shorts are allowed in all dining venues except Ocean Blue & Le Bistro after 5:00 PM. Shoes and shirts must me worn."