It looks to me like InDesign is outputting UTF-8 Unicode, but your reader/editor doesn't understand UTF-8, so it is treating it as (perhaps) some MS code page. I always have to use a hex-dump to check that, just to be absolutely sure. Mostly I use gedit in Linux, which understands Unicode in most of its variations. -- UTF-8 is required by the epub standard, so it would be good to have an editor which understands UTF-8...
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