The default FLAC project is not compiled with UNICODE defined, but it is easy to do so and it should be default in this day and age. There is a small modification that has to be done: In src\share\win_utf8_io\win_utf8_io.c, LoadLibrary("msvcrt.dll") has to be changed to LoadLibrary(TEXT("msvcrt.dll")) - it will then compile both with and without UNICODE defined.
It can be fixed in 3 ways:
LoadLibrary(TEXT("msvcrt.dll"))
LoadLibraryA("msvcrt.dll")
LoadLibraryW(L"msvcrt.dll")