Renaming Folder loops with error message

[jslovato]

Thunderbird 102.10.0 (64-bit)
macOS Ventura 13.3.1

Attempting to change a misspelled a folder name under my main inbox based on character case causes Thunderbird to error saying the existing folder exists and to choose a new name. Are folder names not case sensitive? Cancel is greyed out, only the rename button works and causes the loops.

For example changing "matt" to "Matt" causes the issue with the message: "A folder with that name already exists. Please enter a different name." A single ok button is presented and will either cause the error box to repeat, but sometimes finishes and goes away. When the error box repeats, only a restart of thunderbird will cause it to go away.