Hi, I think the changes introduced in #1419 are causing the exclude logic to crash on startup with a UnicodeDecodeError.

Here's how to replicate this:

1. In a path with __pycache__ from old (pre-3.10) versions of Python (easy way appears to be python3.9 -m compileall .), add **/__pycache__/** to your exclude option in pytype.cfg (my use case is a Django project: I exclude **/migrations/ so that pytype doesn't complain about the auto-generated code)
2. Using python 3.11, run pytype --config pytype.cfg
3. Observe the crash during startup.

The naive ways to fix this would be to either add in if f.endswith(".pyc"): continue in expand_source_files() or enclose the call to read the line in a try/except UnicodeDecodeError: return False