Clo
TC cannot with 100% guarantee determine if some file is binary or not, and if it's binary - will it be damaged on upload/download or not: it depends of the server. You've had luck that your particular files from your particular server were downloaded correctly despite of having "incorrect" bytes in it. It's even possible that
uploading the same files back to the same server (in text mode, of course) will damage them. For example, I've uploaded on my web-site some Unicode file and downloaded it in text mode: it became damaged (Unix-like new-line characters tried to be replaced with Windows-like ones - but in such a manner as if they were non-Unicode ones).
So, TC can only determine (with some probability) that the file is not ANSI-text and warn about it. But it does not tell that the file will
definitely be damaged after such an operation, it just warns that it's
possible.
Then, the issue is : WHY TC doesn't switch to “Binary” when set in Automatic mode ?
The reason is that it doesn't know if the file will
really be damaged. Maybe, it was your purpose - to transfer your binary file in text mode.
- In such a case, the message might be :
“WARNING! TC tries to transfer a binary file in text mode! …”
Eh... I cannot see the reason of such a change. Now the message is:
"WARNING!
You try to transfer a binary file in text mode! ..."
And it's really not TC, it is
you who tries to transfer the file.

TC just performs the operation you told him to perform.
- Since TC is able to display such a message, it might be able too to switch to the right mode, ignoring the *.TXT extension, might it not ?
Not ignoring - but in addition. E.g. display not a standard Yes/No message, but smth like "What do you want to do? Continue text/Stop transfer/Transfer in Binary mode/Switch to Binary mode permanently" But I can't imagine a good interface for it yet... Such long text on the buttons would not be a good idea, I think. But such an idea itself looks to be useful.