Nah, Windows still fucks it up. I was forced to use Windows 11 for a code generation tool from a chip vendor the other week and it screwed everything up by inserting references to a directory with different cases than how it was actually created.
That's more likely to be the tool assuming it's running on a case-insensitive filesystem than it is Windows breaking anything. If you mount networked storage running on a case-sensitive machine, that's something that's worked fine in Windows for a very long time.
The tool is making the assumption, but everything works on Windows. Windows obviously selectively enforces case sensitivity, surely for backwards compatibility, and this stone-age behavior masks the problem.