That code doesn't run. Please provide the code you actually ran. For starters, I don't know if you've removed

local $XML::Simple::PREFERRED_PARSER = 'XML::Parser';
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or not.

Sorry, I only sent a clip of a rather large program.

I didn't remove the preferred parser setting.

Here's a sample xml file:

<?xml version="1.0" encoding="utf-8" standalone="yes"?>
<ettx ver="2">
  <table id="{4fa6cd7a-f7b6-416d-8f59-3acc0eab9bdb}" name="TestFile">

    <level type="V">
      <map sync="Title" src="some unicode chars"/>
    </level>
  </table>
</ettx>
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Here's the code where the XML parsing takes place:

package ETTX;
use strict;
use warnings;
use XML::Simple;
local $XML::Simple::PREFERRED_PARSER = 'XML::Parser';
sub new(){#scalar file name
    my $class = shift;
    my $self = 
        {
            ettxFile => '',
            ettx => {},
        };
    bless $self, $class;
    load($self,shift) if @_ ==1;
    return $self;
};

sub load(){#scalar file name
    my ($self, $ettxFile) = @_;
    print "loading $ettxFile";
    open(my $fh, '<', $ettxFile);
    binmode($fh);
    my $xml = XML::Simple->new();
    $self->{ettx} = 
        $xml->XMLin($fh, 
            ForceArray => ['map'], KeyAttr => {}, 
        )
    ->{table};
    $self->{ettxFile} = $ettxFile;
    1;
}
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I call it from somewhere else like this:

my $ettx = ETTX->new();
$ettx->load($ettxFile);
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utf8 with BOM kills it; without is fine.

local $XML::Simple::PREFERRED_PARSER = 'XML::Parser'; is misplaced. You call load after the local falls out of scope, and thus after the local undid the assignment.

The point of specifying PREFERRED_PARSER is to choose the fastest parser available for XML::Simple and to avoid buggy XML::SAX::PurePerl. Since you get the the encoding error when you don't specify PREFERRED_PARSER, you must be defaulting to XML::SAX::PurePerl. I take it out of my XML::SAX configuration file so it never gets selected.

You are also using incorrect prototypes. You say your functions take no arguments, but that's obviously not true.

Fixed:

package ETTX;
use strict;
use warnings;
use XML::Simple;
sub new { #scalar file name
    my $class = shift;
    my $self = 
        {
            ettxFile => '',
            ettx => {},
        };
    bless $self, $class;
    $self->load(@_) if @_;
    return $self;
};

sub load { #scalar file name
    my ($self, $ettxFile) = @_;
    print "loading $ettxFile";
    open(my $fh, '<', $ettxFile);
    binmode($fh);
    local $XML::Simple::PREFERRED_PARSER = 'XML::Parser';
    my $xml = XML::Simple->new();
    $self->{ettx} = 
        $xml->XMLin($fh, 
            ForceArray => ['map'], KeyAttr => {}, 
        )
    ->{table};
    $self->{ettxFile} = $ettxFile;
    1;
}
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