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Mostly fixed by PR 16545 (see issue13153). The original example is now passed.
>>> raise Exception('\U0001f603')
Traceback (most recent call last):
 File "<pyshell#1>", line 1, in <module>
 raise Exception('\U0001f603')
Exception: 😃
>>> 
But you can still cause a restart of the shell by using surrogate characters:
>>> raise Exception('\ud800')
Traceback (most recent call last):
 File "<pyshell#0>", line 1, in <module>
 raise Exception('\ud800')
Traceback (most recent call last):
 File "<pyshell#0>", line 1, in <module>
 raise Exception('\ud800')
================================ RESTART: Shell ================================
>>>