Paths ARE Unicode strings on 99% of the computers with humans sitting in front of them. NTFS, HFS+, and APFS all use Unicode but more importantly, the experience of not using valid Unicode where that’s possible is horrible: undeletable files, crashes, etc. I’ve seen that many times over the years (it was popular with malware authors) but never a time where this was a desirable behavior.

The default should always be Unicode with only people writing low-level backup and security tools dealing with bytes.