This does work, but I'm in a situation where I ABSOLUTELY HAVE TO use the UTF8, because the descriptions that I put in the file are in a language that requires UTF8 and I am absolutely sure this used to work just fine, because I have a ton of products imported like that.
So technically, this is a new issue right now, May 2023 and your solution (though it works) is not an actual solution, but rather a workaround of sorts. Hope someone fixes it soon.