Please read this first: https://github.com/codewars/codewars.com/wiki/Troubleshooting-your-solution

And then the error message:

Traceback (most recent call last):
  File "main.py", line 4, in <module>
    Test.assert_equals(encrypt("This is a test!", 0), "This is a test!")
  File "/home/codewarrior/solution.py", line 5, in encrypt
    return encrypt(text, n)
  File "/home/codewarrior/solution.py", line 5, in encrypt
    return encrypt(text, n)
  File "/home/codewarrior/solution.py", line 5, in encrypt
    return encrypt(text, n)
  [Previous line repeated 995 more times]
  File "/home/codewarrior/solution.py", line 2, in encrypt
    while n < 1:
RecursionError: maximum recursion depth exceeded in comparison

You have an infinite loop in your code (check that exact input in your IDE). Not a kata issue.

That's the case for most katas. If your function isn't pure, such errors are to be expected.

You are using a global variable: correct_number, which would just accumulate the data from last function call.

You should put the declaration inside the function body to store only relevent stuff.