What are the potential issues with character encoding when connecting to a SQL Server using PHP and how can they be resolved?

Potential issues with character encoding when connecting to a SQL Server using PHP include data corruption or incorrect display of special characters. To resolve this, ensure that the character encoding settings in PHP match those of the SQL Server database. This can be achieved by setting the character set in the connection string or using the `SET NAMES` query after connecting to the database.

// Connect to SQL Server with character encoding settings
$serverName = "your_server_name";
$connectionOptions = array(
    "Database" => "your_database_name",
    "Uid" => "your_username",
    "PWD" => "your_password",
    "CharacterSet" => "UTF-8" // Set character encoding
);

$conn = sqlsrv_connect($serverName, $connectionOptions);

// Set character encoding after connecting
sqlsrv_query($conn, "SET NAMES 'UTF8'");