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We get the following error after replacing Sprockets with Propshaft:
ActionView::Template::Error (incompatible character encodings: ASCII-8BIT and UTF-8)
This fix resolves the issue.
Propshaft::Asset#content returns an ASCII-8BIT encoded string because it's using File::binread under the hood so the encoding needs to be set to UTF-8 if it's a JS or CSS file.