Changing capitalization in a newly created folder will not rename folder and the user will be presented with "A folder already exists at this location with this name.
Also occurring in 5.0-Release
This is not a regression due to it occurring in 4.27.
Result: A folder already exists at this location with this name.
Expected Result: The folder should be renamed.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-137445 in the post.