Azure Functions Tools fail to start when there is a non american character on the user name (%userprofile% directory)

The network administrator just setup Active Directory integration and my user profile directory was created with non american characters. My name has an accent (^ ê).
My azure function project stopped working and I found out that the only problem was having an accent in the user profile directory.

From User Voice https://feedback.azure.com/forums/355860-azure-functions/suggestions/37532194-azure-functions-tools-fail-to-start-when-there-is

Start by reproducing Azure Functions Tools startup with a user profile directory containing accented characters, then trace the startup path that reads the profile location. Done means the tools start and the Azure Functions project works with such a profile; the payload names no files or tests to run.

Written by the indexing model from the issue text.