Improving on "git not handling non-text files" is a semantic understanding aka parse step in between the file write.

Take a docx, write the file, parse it into entities e.g. paragraph, table, etc. and track changes on those entities instead of the binary blob. You can apply the same logic to files used in game development.

The hard part is making this fast enough. But I am working on this with lix [0].

[0] https://github.com/opral/lix