The stable-1.0 branch didn't support Unicode at all.
--- a/physfs.h Thu Aug 14 21:27:00 2014 -0400
+++ b/physfs.h Thu Aug 14 21:57:36 2014 -0400
@@ -899,7 +899,7 @@
*
* Feel free to sort the list however you like. However, the returned data
* will always contain no duplicates, and will be always sorted in alphabetic
- * (rather: Unicode) order for you.
+ * (rather: Latin1, probably) order for you.
*
* Don't forget to call PHYSFS_freeList() with the return value from this
* function when you are done with it.