Yeah, looks like a genuine bug; apparently not supporting carriage return and newline in file names is a deliberate choice in Mercurial, and the relevant bug[1] mentions an issue similar to what you're running into. Since it looks like Git doesn't have this limitation, it's something we'll need to work around.
I've been looking into auditing paths anyway, so I'll see if I can hack up something that should allow you to proceed.
The solution is twofold: 1) change the path auditing in `hggit/git_handler.py` to exclude offending paths rather than erroring out. 2) add a check for `\r` and `\n` to the auditing. I already did something similar, but towards git in the `dropdotgit` topic.
[1]
https://bz.mercurial-scm.org/show_bug.cgi?id=352
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Dan Villiom Podlaski Christiansen
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