SOLUTION:
The issue seems to be occuring while trying to handle emojies, therefore the unicode characters have caused some issue. To resolve that, have added an addition line where if the emojie is not recognised, replace it with a unknown symbol (like <?>)
if _is_ascii(content):
# Required to make sure emojis are correctly parsed
content = (
content.encode("utf-8", errors="replace") #CHANGE WAS MADE HERE
.decode("utf-8") #CHANGE WAS MADE HERE
.encode("utf-16", "surrogatepass")
.decode("utf-16")
)
Code path: lib\site-packages\rasa\shared\utils\yaml.py", line 438, in read_yaml
NOTE: This method had worked for me and it was able to run the bot smoothly, however if there are any alternatives to this, please do correct me 