E-mails do not treat special characters properly and contain meta tags

[dmilojevic]

Hello everyone.

I just upgraded from 2.0.12 to 2.1.2. Hosted on shared Cpanel host, with php 8.1 and Apache2.
The upgrade went great. New version works really well.

E-mails sent by smf (default sending option, PHP type) are having mime/meta data inside the message body. In addition, when I use Send Test function and enter some local language characters (like š, đ...), I get their htmlencoded equivalents in the message (š đ).

Any ideas where to start with troubleshooting this?
Thanks!