Seems that not just the IFS Stream Files created by the JAR command were affected by a change IBM made in V7R4 to files created by the "non-native" applications, but all functions that create files such as PASE, Java, and other OSS commands were.
In the past these files would be created with a CCSID of 819. In V7R4 they are created as 1208 by default which can throw a monkey wrench into a lot of long-standing applications.
The issue is the same, though, as is the fix which is mentioned in the link to the article above.
You will need to set an environment variable to tell the system to cut it out! :)
ADDENVVAR ENVVAR(PASE_DEFAULT_UTF8) VALUE(N)
But there is one thing to note... if your application is a Java application this needs to be set before any instance of the Java Virtual Machine (JVM) is created, which for the most part means before any Java application is run in a new IBM i job.