In Vanilla 2 I've noticed all the non-URL-friendly characters are either replaced with dashes or discarded completely. As a consequence the URLs are totally meaningless if you happen to write in a language other than English. I don't think it's a feature, so I suppose it's a bug?
Vanilla 1 did a great job converting characters for "friendly URLs": for example an "ü" becomes "u", "ø" becomes "o" and so on.
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