Reducing the code to its basic form, your first snippet is of the form
list.Where(p => NameContainsPassword(p) || HasEncryptedConfigurationItemAttribute(p))
where I inlined your IsNeverSerializedProperty function.
The second function is of the form
list
.Where(p => NameContainsPassword(p))
.Where(p => HasEncryptedConfigurationItemAttribute(p))
which first filters all items for which NameContainsPassword(p) holds and then from that filters all items for which HasEncryptedConfigurationItemAttribute holds, hence this is equivalent to
list.Where(p => NameContainsPassword(p) && HasEncryptedConfigurationItemAttribute(p))
Note that the logical operator is different (|| vs &&).
solved How to correctly add Func to Linq?