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Figured out the solution. Instead of doing fileReader.readAsText() I changed to fileReader.readAsDataURL() and then the download looks like this now
downloadFile() {
var a = document.createElement('a')
a.download = fileName
a.href = fileData
a.dataset.downloadurl = [a.download, a.href].join(':')
a.click()
}
The issue was indeed the wrong data format in the beginning!
Source:stackexchange.com