I have run into this issue aswell with the latest version
(1.7.6), so i assume it's not fixed. I also changed the encoding to
UTF-8. Pushed in an existing repository and started cloning it
(with --debugflag). It hung on a file containing
'ä' in the filename and shortly timed out and showed an error.
Samme issue with another repository, hangs on file with the letter
'ä' in the filename. Changed encoding back to 1252 (original
setting) and i could successfully clone the repository. Just
thought i'd let you know.