So I got here, because I have the same issue! I want to move from windows to linux.
What I noticed, i was using powershell on windows to create the database dump and opening it with vscode revealed, it was utf16 and special characters like ß
where already broken inside the file.
Solution was to use cmd ("kind of old dos prompt") running the same dump command. this created a utf8 file with special chars intact. I was able to import this file without any error and special characters where just fine!