Jim Foltz posted a link above to another thread on this issue where one of the Trimble employees acknowledged the error and cause.
The cause is not specifically "\u", it is any of the normal escape sequences that Ruby (and many other programming languages) use in double-quoted strings.
There is not an actual Dynamic Components issue tracker (although I’ve politicked for one for years.)
I started an informal thread to post errors here in the Ruby API forum, but apparently the Trimble employees pay it no heed. I did post a notice to this issue in that thread, viz …
I am having the same trouble with my SketchUp Pro 2021 application DYNAMIC COMPONENT, it isn’t working. I know now, reading your letters, that the problem has a lot of years. I don’t understand way sketchup do not make a solution. I contact with the help center 24 hours ego and I haven´t an answer yet about this topic. Thanks Community for the information.
I found a short cut for this function error Dynamic Components. I past a copy of my specific work in a previously Sketchup open new page; I make all changes (basically “open-close-slice” doors, windows) in my work, copy additions and past at my original page. I do not save or close the Sketchup meanwhile I am working on.