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I though LWE and SVP were NP-hard. Doesn't breaking them mean NP is in BQP, and thus classical computer encryption is entirely broken with quantum computers ?

How would we recover from this back to the drawing board ?

Exact SVP is NP-hard, but LWE is not. Kyber/ML-KEM and Dilithium/ML-DSA) rely on approximate lattice problems, not exact ones.