No dice, sadly. Everything works fine and dandy when overwriting a file that exists in the main game folders, but obviously this produces problems when the game is updated, and when using more than one mod. A dev response wouldn't go amiss, if anyone reads this!
It works perfectly fine for me to add localization in a new file in my mod. So there must be something wrong on your end, probably with your localization file. As already pointed out the ile needs to be in UTF-8. Easiest is to just copy a vanilla file, change the name and then replace the contents of it with your own.
If you still can't get it to work, upload a zip file here containing a minimum mod with the problem (i.e. containing only the localization file and something to test it with, like an event).
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