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I have the same problem here, but while installing/updating the module. Checked db but its utf-8 as well in global.php.
I checked locally.
Installed news 1.66 on xoops 2.5.0->ok
upgraded to 2.5.1->ok
updated the news module->error
http://localhost/modules/system/admin.php?fct=modulesadmin&op=update&module=newsit must be combi of 2.5.1 and news 1.66
anyone found something yet?
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It seems the template files of the module in the themes folder got changed some way.
They had indeed #039; in the file instead of '