As Adam says, this change applies to all upvotes on all questions - open, locked, closed, or deleted. Since it seems it might help, I'd like to take a bit to talk through.
Firstly, it's just easier to recalculate all upvotes on questions to be the same value. If we only change the value of these votes on one type or quality of post, we have to remember a lot more. We need to know when the vote was cast and the status of the post at the time of the recalc - keep in mind that the status of a post can always change! This is a bit of a mess.
If all votes are worth the same regardless of the post's current status and we recalculate that now, we never have to recalculate again, which we'd have to do if the closed question was reopened, for example, or a deleted question was undeleted or a negatively-scoring post became positively scoring.
In your question you say:
Since it is Closed, it does not meet the condition for Good. Will the reputation recalculation apply to it?
There are lots of questions that aren't "good" that are also not closed... for example, all of the negatively-scoring questions. They often still have one or more upvotes. We don't reduce the value of an upvote if the net score of a post is negative, so failing to recalculate for all questions of all quality doesn't really make sense.
And, in your specific example, when a question is closed, the asker and the answerers (if any) all retain any reputation earned (or lost) as reflected in the current vote count of the question and answers. Additionally, votes can still be cast while the question is closed. Since we don't reduce the value for an upvote ever - an upvote is always worth +10 and a downvote always -2 - the only logical choice is to apply this retroactively, too.
While we don't reduce the value, we do zero it out in one case - when a post is deleted. In this case, the system retains a memory of the votes but does not assign them to the user's reputation total. But if the post is undeleted, the value of the votes is added back to the poster's reputation.