I ran into a strange issue with my ArchLinux setup. Vim uses correct encoding for reading/displaying files but these status messages (which displays the current mode or reports back when the buffer is written to a file) uses a wrong encoding for the (Hungarian) message.
I tried to set termencoding=utf-8 but it does not solve the issue. The encoding is correctly set to utf-8. The MATE Terminal is also in UTF-8 and my locale is also in UTF-8:
LANG=hu_HU.UTF-8 LC_CTYPE="hu_HU.UTF-8" LC_NUMERIC="hu_HU.UTF-8" LC_TIME="hu_HU.UTF-8" LC_COLLATE="hu_HU.UTF-8" LC_MONETARY="hu_HU.UTF-8" LC_MESSAGES="hu_HU.UTF-8" LC_PAPER="hu_HU.UTF-8" LC_NAME="hu_HU.UTF-8" LC_ADDRESS="hu_HU.UTF-8" LC_TELEPHONE="hu_HU.UTF-8" LC_MEASUREMENT="hu_HU.UTF-8" LC_IDENTIFICATION="hu_HU.UTF-8" I currently ran out of ideas, please help me out.

vim.mo. No luck. Maybe compiling it from git would solve the issue, but I didn't want that much fuss, so just deleted thevim.mofrom/usr/share/locale-langpack/hu/LC_MESSAGES. Now my gvim menu is still in hungarian (it comes from elsewhere), and no translations in the status line, which is far more better than the one with bad encoding. By the way my ubuntu is 22.04, vim version is 8.2.