See lines 59-60 from https://github.com/libgit2/libgit2/blob/44b1ff4c1209c34360cc0c43761c40f5f5020886/src/filter.c which contain a couple of lines of code to ignore an EOF at the end of a file when detecting if it is a text file or not. These came from this contribution that Dmitry made to core Git back in 2008 (https://github.com/git/git/commit/f9dd4bf4e58af0b4828c7e7013080dba59f8a6b9) which was committed by Junio.

Dmitry gave his permission for these changes to be included in LibGit2 as well via email to vmg and myself