Can't start working with Vagrant - `encode!': "\\xE2" to UTF-8 in conversion from ASCII-8BIT to UTF-8 to UTF-16LE

I have installed Vagrant on my Windows 11 laptop. I have added Vagrant to PATH. I can’t initialize the work. Every command, such as vagrant init or vagrant up gets this bunch of text.

I’m using Windows Terminal with Powershell for this.

Traceback (most recent call last):
        30: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/bin/vagrant:194:in `<main>'
        29: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/bin/vagrant:194:in `new'
        28: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:178:in `initialize'
        27: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:984:in `process_configured_plugins'
        26: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:956:in `find_configured_plugins'
        25: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:944:in `guess_provider'
        24: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:347:in `default_provider'
        23: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/registry.rb:48:in `each'
        22: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/registry.rb:48:in `each'
        21: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/registry.rb:49:in `block in each'
        20: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/environment.rb:361:in `block in default_provider'
        19: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/plugins/providers/hyperv/provider.rb:20:in `usable?'
        18: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/platform.rb:84:in `windows_admin?'
        17: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/platform.rb:82:in `block in windows_admin?'
        16: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/powershell.rb:113:in `execute_cmd'
        15: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/powershell.rb:212:in `validate_install!'
        14: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/powershell.rb:191:in `version'
        13: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/subprocess.rb:22:in `execute'
        12: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/subprocess.rb:154:in `execute'
        11: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/safe_chdir.rb:24:in `safe_chdir'
        10: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/safe_chdir.rb:24:in `synchronize'
         9: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/safe_chdir.rb:25:in `block in safe_chdir'
         8: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/safe_chdir.rb:25:in `chdir'
         7: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/safe_chdir.rb:26:in `block (2 levels) in safe_chdir'
         6: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/vagrant-2.2.19/lib/vagrant/util/subprocess.rb:155:in `block in execute'
         5: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/abstract_process.rb:81:in `start'
         4: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/windows/process.rb:70:in `launch_process'
         3: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/windows/process_builder.rb:28:in `start'
         2: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/windows/process_builder.rb:67:in `create_environment_pointer'
         1: from C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/windows/process_builder.rb:44:in `to_wide_string'
C:/HashiCorp/Vagrant/embedded/gems/2.2.19/gems/childprocess-4.1.0/lib/childprocess/windows/process_builder.rb:44:in `encode!': "\\xE2" to UTF-8 in conversion from ASCII-8BIT to UTF-8 to UTF-16LE (Encoding::UndefinedConversionError)