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This Pull Request Fixes #16669 . This pull request makes a one line change to mypy/pyinfo.py to force the stdout of the python process to use utf-8.
One can replicate this error in Windows using Python3.8 just by calling the mypy/pyinfo.py module using a slightly modified code of the
get_search_dirs
function where the python executable doesn't match the value of sys.executable. The only modification made to this code fromget_search_dirs
is the adding of a non-ascii-path to the env parameter to subprocess.Running this code with out the fix returns this error in windows

Running pyinfo.py after forcing stdout to use utf-8 returns the expected value for sys_path and site_packages