Welcome to the Make community!
From the Help Center:
Buffer (binary data)
File content is usually sent as Buffer type (image content, video file and others). In some cases, there is text data included in this type (e.g. text file). Make is able to automatically convert text data in binary code to text (and vice versa). For more information on working with files see the Working with files article.
So while you cannot simply use the File Data as-is:
You can do is just force it through the “Convert encoding” module using the same input and output encoding. I used UTF-8 since it’s a universal and common encoding type and it is very likely it will be compatible.
Then you can retrieve/reference the text from the output bundle:
Hope this helps!!!