diff --git a/CHANGELOG/v3.md b/CHANGELOG/v3.md
index 915f96f..b623735 100644
--- a/CHANGELOG/v3.md
+++ b/CHANGELOG/v3.md
@@ -1,5 +1,10 @@
 # v3 Changelog
 
+## [v3.1.6]
+
+- Fixed an issue where the MOF file encoding was set to UTF-8 without BOM instead of UTF-16LE required
+  by the DSC engine.
+
 ## [v3.1.5]
 
 - Improved module fingerprint detection to only warn if the actual module contents for the DSC schema
diff --git a/M365DSC.PSDesiredStateConfiguration/Compat/PSDesiredStateConfiguration/PSDesiredStateConfiguration.psd1 b/M365DSC.PSDesiredStateConfiguration/Compat/PSDesiredStateConfiguration/PSDesiredStateConfiguration.psd1
index 40c8ecf..a35827b 100644
--- a/M365DSC.PSDesiredStateConfiguration/Compat/PSDesiredStateConfiguration/PSDesiredStateConfiguration.psd1
+++ b/M365DSC.PSDesiredStateConfiguration/Compat/PSDesiredStateConfiguration/PSDesiredStateConfiguration.psd1
@@ -6,7 +6,7 @@
 
     RootModule = 'PSDesiredStateConfiguration.psm1'
 
-    ModuleVersion = '3.1.5'
+    ModuleVersion = '3.1.6'
 
     CompatiblePSEditions = @('Desktop', 'Core')
 
diff --git a/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psd1 b/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psd1
index 50a1000..e0070d4 100644
--- a/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psd1
+++ b/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psd1
@@ -9,7 +9,7 @@
     RootModule = 'M365DSC.PSDesiredStateConfiguration.psm1'
 
     # Version number of this module.
-    ModuleVersion = '3.1.5'
+    ModuleVersion = '3.1.6'
 
     # Supported PSEditions
     CompatiblePSEditions = @('Desktop', 'Core')
diff --git a/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psm1 b/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psm1
index 1286d7a..8ff4b4f 100644
--- a/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psm1
+++ b/M365DSC.PSDesiredStateConfiguration/M365DSC.PSDesiredStateConfiguration.psm1
@@ -2624,9 +2624,6 @@ function ImportCimAndScriptKeywordsFromModule
     return $foundCimSchema -or $foundScriptSchema
 }
 
-#
-# Writes a MOF document to disk with a deterministic encoding (UTF-8 without
-# BOM) on both Windows PowerShell 5.1 and PowerShell 7.
 #
 # Builds the OMI_ConfigurationDocument instance that closes a document.
 function New-ConfigurationDocumentInstance
@@ -2655,6 +2652,10 @@ function New-ConfigurationDocumentInstance
     " Name=`"$(Get-PSTopConfigurationName)`";`n};"
 }
 
+#
+# Writes a MOF document to disk as UTF-16LE with a BOM. The MI MOF parser decodes a
+# document without a UTF-16 BOM as Latin-1, which corrupts every non-ASCII character.
+#
 function Write-MofDocumentFile
 {
     param(
@@ -2668,7 +2669,7 @@ function Write-MofDocumentFile
     )
 
     $resolvedPath = $ExecutionContext.SessionState.Path.GetUnresolvedProviderPathFromPSPath($Path)
-    [System.IO.File]::WriteAllText($resolvedPath, ($Content + "`r`n"), [System.Text.UTF8Encoding]::new($false))
+    [System.IO.File]::WriteAllText($resolvedPath, ($Content + "`r`n"), [System.Text.UnicodeEncoding]::new($false, $true))
 }
 
 #