Getting "Invalid file path specified" after update from v2.2 to v3.7

Hi guys,
recently I updated one of my client’s website from v2.2 to v3.7.13 and I encountered weird issue that I wasn’t able to resolve yet.

When I try to access media on the backend, I am getting following error:

Invalid file path specified: '/Cenník - 2025 I.Q - 13.01.2025.pdf'.
~/modules/media/classes/MediaLibrary.php line 498

It looks like it is pointing to root folder instead of the media folder. I was checking settings in config files and in .env and evertyhing looks fine. I have correct path there '/storage/app/media

I also tried to turn off all plugins to see if the issue is not there, but with no effect.
I cleared the cache of course.

Do you have any clue what might be 'causing this problem.? It is present both on the local version of website and also on public hosting.

Also, files that are in media folder are accessbile from twig, so I can see them on the website, I just can’t manage media files or add new ones.

Thank you in advance for your answers.

I’d be worried with that funny i in your pricelist filename, try to rename it first.

Well, it looks like it really has problem with diacritics. There was no problem with it in v2.2, but it looks like this is not allowed in v3.7. At leas when I upload files now through admin UI, it renames it so it doesn’t contain any diacritics or spaces.

Is it possible to allow it so I don’t need to rename a relink all the media files? It’s actually quite a lot of files in this project.