UTF8 conversion

The following documentation comment has been logged on the website:

Page: https://www.postgresql.org/docs/11/functions-string.html
Description:

I cannot get psql to accept an UTF8 string, link update .. set ... =
'josé';
In the docpage on encodings, jose is used in examples for UTF8.
Plainly this makes no sense. If you give examples, use the specifics in
question, like a proper UTF8 string such as 'josé'.
That would help me, and probably quite a few others, greatly.
I can go in a song and dance about my settings. Believe me, I a proper
client_encoding and database encoding, and done umpteen attempts, but using
UTF8 in psql queries (without UGLY \u notation) appears completely
impossible.
Example: select 'jose'; Works fine. select 'josé'; will just hang, even if
embellished with ::utf8 or ::bytea.
When executing the query, psql does not return to its prompt until using ^c.
One might believe it is executing the query, but that simply is not so.
Then it shows it has not found the end of the string.
This mis-behavior irritates me wildly in an otherwise great product.