You either explicitly tried to turn on txtflag and set a ccsid equal to 0 or 0xFFFF (binary), or you tried to change one of the fields of the filetag which would result in this combination.
The filetag of the file specified in the error message will not be changed. The command continues.
Find out what state the filetag is in with the -p or -v option, then issue the chtag command with a valid combination of options.