Hey @efratm!
I think this is the first time I've seen someone with the latin-1 encoding (which is weird as it used to be a super common standard).
There's not necessarily any bad characters here, rather latin-1 just cannot express some symbols. What strikes me as odd is that QIIME 2 is attempting to use latin-1 at all. It looks like perhaps we did not specify utf-8 (which can encode all characters) to our bibtex library, and so it must be using a default?
Where it is getting that default is less clear, I would guess that it's your environment configuration, so let's see if that's true:
env | grep "LC\|LANG\|LANGUAGE"
That command will tell us how your environment's locale is configured, and we can brainstorm from there.