VPN is mostly a point to point ( or site to site) does not really care the end points are in cloud or local. its only a secure pipe to transfer data between end points. not sure what you meant by re-encrypt
Do you mean: "will the VPN access to some data result in encrypting of this data in transit even if the data is already encrypted on a remote storage system"?
If so, the answer is yes - independently from the storage place (cloud or no cloud). VPN encrypts all data traffic between you and the remote system/LAN without analyzing the data.
Agree with Denis. Although it is convenient to think of a vpn as a form of dedicated point to point circuit, it is simply a packet with a source and destination. The source encrypts the original packet and the destination decrypts it. The source does not regard the data as anything more than bytes of data; the source encrypts the bytes when sending to the destination irrespective of whether it is already encrypted.