In addition to the problem described in #1942 the application/x-www-form-urlencoded also bloates the size of the request body. I don't think that using url encoding for binary data upload is the best choice.
Expected behaviour
Using content-type: application/octet-stream
Actual behaviour
Using content-type: application/x-www-form-urlencoded bloats request body size.
Environment data
iOS version: iOS 15.4
Nextcloud iOS app version: 4.3.1