This really doesn't have anything to do with C#. This is your classic nvarchar vs varchar issue (or unicode vs ASCII). The same thing happens if you mix collations. I'm not sure why anyone would choose varchar for a column in 2026 unless if you have some sort of ancient backwards compatibility situation.
I agree with your first point. I've seen this same issue crop up in several other ORMs. As to your second point. VARCHAR uses N + 2 bytes where as NVARCHAR uses N*2 + 2 bytes for storage (at least on SQL Server). The vast majority of character fields in databases I've worked with do not need to store unicode values.
https://learn.microsoft.com/en-us/sql/relational-databases/d...
Also UTF-8 is actually just a varchar collation so you don't use nvarchar with that, lol?