Failure to auto-detect ANSI, sets user account's terminal US-ASCII charset (NO_EXASCII), persisently

The original bug report include assumptions and theories about UTF-8. Discussions in IRC concluded that the issue has nothing to do with UTF-8.

Instead, a user connects and ANSI is not detected (don't know why, but likely something to do with ftelnet/websocketservice), the user logs-in successfully but their account is then flagged as US-ASCII charset, even for subsequent connections/logins where ANSI is successfully auto-detected.