Confirmed that the character ´ eg. é will also scramble the name.
If NoLo is activated and you use a recovery key to unlock your Mac you get stuck.
Start the computer and enter recovery key instead of password. Then NoLo login screen is shown, but you are unable to log in. "Behind" the NoLo screen the promt for new password should be shown. Since NoLo is blocking the change password screen you are unable to continue.
Full name of usernames containing Swedish letters åäö, or German ü gets scrambled. A user named "Göran Sedvall" gets the full name "R8O2cmFu Sedvall".
Short name still works as normal.