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Skill issue
who needs version control anyways
Do you have an example for this? Can't imagine source code is not saved as plain text.
It's probably not about the source code, but the game objects, prefabs/blueprints etc.
In Unity as an example, a prefab is essentially a YAML-file
Greatest advantage is when diffing content, ie in code reviews, to roll back something or just see what was changed exactly. With binary files they have to be replaced 1:1, especially when compression or similar is used, since the output barely matches the previous version. Text-formats can be diffed line-by-line.
Presumably OP is referencing things like project settings, scene setups, etc. Possibly also something like unreal's blueprints.
Ofc there are also binary files like 3d models, textures, animations, sounds, sprites, widgets etc, but those don't usually come in human readable formats.
Unreal Blueprints