Google Cloud App SDK crash → cloud crashed (LookupError): unknown encoding cp65001

You can try running:

set PYTHONIOENCODING=UTF-8

Or, create an environment variable with the name 'PYTHONIOENCODING' and value 'UTF-8'.

It solves the problem for me.

I had the exact same problem on Windows 10 and remembered that before Google Cloud installation I had enabled Unicode UTF-8 for worldwide support and disabling that beta feature resolved the issue.

To disable it:

• Open Region & language settings (press WinKey and type: region)
• In Related settings section click Administrative language settings
• On the Administrative tab click Change system locale...
• Be sure to uncheck Beta: Use Unicode UTF-8 for worldwide language support

Try reinstalling Google Cloud SDK and after execute in command line gcloud init again, should work.

Update

This solution considers that you’re using a native shell. If it’s not the case then please try the solution of @jee-mok.

You simply need to make reconnection with Google cloud shell. Reopen Google Cloud SDK Shell

gcloud init

it will ask for new configuration or use an existing one, I used existing one then select account select project on cloud which you want to work.