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You should at least consider encrypting the PII on git, https://github.com/AGWA/git-crypt it is not rocket sience
No, storing encrypted secrets in repositories is an incredibly common and safe practice in DevOps/GitOps environments. Virtually every orchestration tool has some way to support it.
E.g. k8s sealed secrets https://github.com/bitnami-labs/sealed-secrets
E.g. Salt's GPG filters https://docs.saltproject.io/en/latest/ref/renderers/all/salt...
E.g. Ansible Vault https://docs.ansible.com/ansible/latest/user_guide/vault.htm...
E.g. Puppet hiera-yaml https://puppet.com/docs/puppet/6/securing-sensitive-data.htm...