`nvim-tree` does not allow renaming the file even with changed letter capitalization

Description

I'm trying to rename a file by changing the first letter from lowercase to uppercase, but I'm getting an error that says the file cannot be renamed because it already exists.

Neovim version

NVIM v0.9.5
Build type: Release
LuaJIT 2.1.1710088188

Operating system and version

macOS 14.3

Windows variant

No response

nvim-tree version

2086e56

Clean room replication

vim.g.loaded_netrw = 1
vim.g.loaded_netrwPlugin = 1

vim.cmd [[set runtimepath=$VIMRUNTIME]]
vim.cmd [[set packpath=/tmp/nvt-min/site]]
local package_root = "/tmp/nvt-min/site/pack"
local install_path = package_root .. "/packer/start/packer.nvim"
local function load_plugins()
  require("packer").startup {
    {
      "wbthomason/packer.nvim",
      "nvim-tree/nvim-tree.lua",
      "nvim-tree/nvim-web-devicons",
      -- ADD PLUGINS THAT ARE _NECESSARY_ FOR REPRODUCING THE ISSUE
    },
    config = {
      package_root = package_root,
      compile_path = install_path .. "/plugin/packer_compiled.lua",
      display = { non_interactive = true },
    },
  }
end
if vim.fn.isdirectory(install_path) == 0 then
  print "Installing nvim-tree and dependencies."
  vim.fn.system { "git", "clone", "--depth=1", "https://github.com/wbthomason/packer.nvim", install_path }
end
load_plugins()
require("packer").sync()
vim.cmd [[autocmd User PackerComplete ++once echo "Ready!" | lua setup()]]
vim.opt.termguicolors = true
vim.opt.cursorline = true

-- MODIFY NVIM-TREE SETTINGS THAT ARE _NECESSARY_ FOR REPRODUCING THE ISSUE
_G.setup = function()
  require("nvim-tree").setup {}
end

-- UNCOMMENT this block for diagnostics issues, substituting pattern and cmd as appropriate.
-- Requires diagnostics.enable = true in setup.
--[[
vim.api.nvim_create_autocmd("FileType", {
  pattern = "lua",
  callback = function()
    vim.lsp.start { cmd = { "lua-language-server" } }
  end,
})
]]

Steps to reproduce

1. mkdir test
2. cd test
3. touch test.js
4. nvim -nu /tmp/nvt-min.lua
5. :NvimTreeOpen
6. Press r to rename the file.
7. Rename the file to Test.js

Expected behavior

It should be possible to rename the file test.js to Test.js without considering case sensitivity.

Actual behavior

https://github.com/nvim-tree/nvim-tree.lua/assets/44513615/8f9d53c5-f453-4864-aab4-6bb8700dbc57

Start with the clean-room configuration and reproduce the case-sensitive rename through nvim-tree's r action after opening it with :NvimTreeOpen. Trace the rename entry point for the test.js to Test.js case; done means the rename succeeds on macOS 14.3 without the existing-file error.