The issue apparently had to do with setting the cursor...
$this->stmt =$this->connection->prepare($sql, array(PDO::ATTR_CURSOR => PDO::CURSOR_SCROLL, PDO::SQLSRV_ATTR_CURSOR_SCROLL_TYPE => PDO::SQLSRV_CURSOR_BUFFERED));
After removing the cursor settings from the options array, the unknown characters went away.