Is the text encoding setting for repositories via Phabricar still working?

Hello,

In the repository my team is using are files which are not all in UTF-8 format. To convert affected files we have previosly set the text encoding setting to ISO-8859-1. So the files were automatically converted during the arc diff command execution. After phabricator upgrade the files are marked as binary files, when executing arc diff. It seems like the automatic text encoding conversion is not working anymore. When executing arc diff --encoding="ISO-8859-1" the files are properly converted. Is this a bug?

Current Phabricator Version Information

Library Version Date Branchpoint
phabricator 93b08f0e83e6 Fri, May 15
arcanist e3030ebcad53 Fri, May 15

Other Version Information

Binary Version Path
php 7.2.24-0ubuntu0.18.04.6 apache2handler
diff 3.6 /usr/bin/diff
git 2.17.1 /usr/bin/git
hg Not Available
pygmentize 2.2.0 /usr/bin/pygmentize

Old Phabricator Version infomation:

phabricator 0561043a1f575567b9619637837e86723d977207 (Aug 7 2019) 
arcanist d92fa96366c0ed50e4257508148aa75192d4fb1f (Jun 21 2019) 
phutil b416093386a225b1d9a2de906899b94cbf4babcb (Jul 9 2019) 
php 7.2.24-0ubuntu0.18.04.4 
diff 3.6 at /usr/bin/diff 
git 2.17.1 at /usr/bin/git 
hg Not Available 
pygmentize 2.2.0 at /usr/bin/pygmentize 
svn Not Available