I installed the attached patch, which should fix the bug, and am closing this.
>From 1d6609c299d2a51747c9bc9e82a399d53c54f8ea Mon Sep 17 00:00:00 2001
From: Paul Eggert
Date: Sun, 31 Jan 2016 23:29:01 -0800
Subject: [PATCH] Omit excess "Binary file ... matches"
Problem reported in: http://bugs.g
I ran into this problem when using 'grep' to search through GNU Emacs installed
files. Here's how to reproduce the problem:
$ (echo xxx && yes yyy | sed 10q && printf '\0') >big
$ grep xxx big
xxx
Binary file big matches
The last line should not be output. I'll look into fixing this.