Getting 'UTF-8' Error on dbt-core while testing on local system(vscodes)

The problem I’m having is while testing the code in my local system in dbt-core i.e while running any dbt command I am facing an error saying ‘UnicodeDecodeError: ‘utf-8’ codec can’t decode byte 0xff in position 0: invalid start byte’.

The context of why I’m trying to do this is I have to test the code before putting it into the production

What I’ve already tried- I tried to check the encoding is set up by utf-8.

Attaching the screenshot of the error:

Error messages:

C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dateutil\tz\tz.py:37: DeprecationWarning: datetime.datetime.utcfromtim
estamp() is deprecated and scheduled for removal in a future version. Use timezone-aware objects to represent datetimes in UTC: datetime.datetime.
fromtimestamp(timestamp, datetime.UTC).
<frozen importlib._bootstrap>:488: DeprecationWarning: Type google._upb._message.MessageMapContainer uses PyType_Spec with a metaclass that has cu
stom tp_new. This is deprecated and will no longer be allowed in Python 3.14.
<frozen importlib._bootstrap>:488: DeprecationWarning: Type google._upb._message.ScalarMapContainer uses PyType_Spec with a metaclass that has cus
tom tp_new. This is deprecated and will no longer be allowed in Python 3.14.
06:54:56  Encountered an error:
'utf-8' codec can't decode byte 0xff in position 0: invalid start byte
06:54:56  Traceback (most recent call last):
  File "C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\cli\requires.py", line 90, in wrapper
    result, success = func(*args, **kwargs)
                      ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\cli\requires.py", line 44, in wrapper
    flags = Flags(ctx)
            ^^^^^^^^^^
  File "C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\cli\flags.py", line 206, in __init__
    user_config = read_user_config(profiles_dir) if profiles_dir else None
  File "C:\Users\pbharg01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\config\profile.py", line 56, in read_user_config
    profile = read_profile(directory)
              ^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\config\profile.py", line 41, in read_profile
    contents = load_file_contents(path, strip=False)
               ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\01\AppData\Local\Programs\Python\Python312\Lib\site-packages\dbt\clients\system.py", line 98, in load_file_contents
    to_return = handle.read().decode("utf-8")
                ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
UnicodeDecodeError: 'utf-8' codec can't decode byte 0xff in position 0: invalid start byte