I also have non-latin characters in my name however I knew it was always an issue so I never used it in paths etc.
At some point, long time ago, I was tasked to do some maintance with Google Cloud service (can't remember the name of the service now) which was doable only through Python CLI utility and it failed with very similar Python error.
What I found out rather quickly is that utility took my name from Google+ profile, which did include those non-latin characters. No biggie - I thought and fired e-mail to support (yeah it was those times it was still that easy). Few hours passed and I received information that this won't be fixed anytime soon and the best course of action would be to change my name.
Of course, support person probably meant to remove the diacriticals from my Google+ profiles, but still it left unplesant aftertaste for years to come.