I don’t think it does, I don’t think that’s unusual, and I’m not sure it’s even possible (any experts around?).
A character like octal 363 means very different things in different code sets. Latin-1 is just one of them…
Once you venture beyond the ASCII range, and into values decimal 128 and up (high half of byte values):
Extended ASCII makes it very difficult to cope with whatever was intended by that particular binary value.
Windows code page shows more of the pain of the what-is-this-thing question. For some very old uses:
Older Character Sets
Systems these days avoid such problems (somewhat) by using standardized character representations:
Unicode – The World Standard for Text and Emoji
I don’t consider this a Duplicati problem. Its underlying software such as mono and SQLite use Unicode.
Unicode in Microsoft Windows shows Windows NT went Unicode 28 years ago. .NET is a Microsoft tool, and mono follows it. The Unicode article in Wikipedia explains that Linux (for example) went that way too:
UTF-8 uses one to four bytes per code point and, being compact for Latin scripts and ASCII-compatible, provides the de facto standard encoding for interchange of Unicode text. It is used by FreeBSD and most recent Linux distributions as a direct replacement for legacy encodings in general text handling.