Hi,

As you see, stty uses -iutf8. Don't know, whether this results in
problems. What's the output of "stty -a" in your terminal?

speed 9600 baud; 24 rows; 80 columns;

lflags: icanon isig iexten echo echoe -echok echoke -echonl echoctl

-echoprt -altwerase -noflsh -tostop -flusho pendin -nokerninfo

-extproc

iflags: -istrip icrnl -inlcr -igncr ixon -ixoff ixany imaxbel iutf8

-ignbrk brkint -inpck -ignpar -parmrk

oflags: opost onlcr -oxtabs -onocr -onlret

cflags: cread cs8 -parenb -parodd hupcl -clocal -cstopb -crtscts -dsrflow

-dtrflow -mdmbuf

cchars: discard = ^O; dsusp = ^Y; eof = ^D; eol = <undef>;

eol2 = <undef>; erase = ^?; intr = ^C; kill = ^U; lnext = ^V;

min = 1; quit = ^\; reprint = ^R; start = ^Q; status = ^T;

stop = ^S; susp = ^Z; time = 0; werase = ^W;

I have committed a patch to the emacs-25 branch, which shall set the
process encoding to `utf-8-mac'. Could you, pls, check? In case it
doesn't work, pls send the whole traces again that I can check whether
the patch did apply correctly (I cannot test on OS X). If not, we could
try to change tty settings.

I just ran the updated test. Unfortunately, the tramp tests still hang.

I have attached the log of tramp-test32-utf8.

-- Anders