Domain Name System (DNS) names are "case insensitive". This document
explains exactly what that means and provides a clear specification
of the rules https://datatracker.ietf.org/doc/html/rfc4343
Do you, by any chance, have some screenshots for us? I went through the code (rather quickly TBH) and didn't see any places where we do a conversion to lower-case for client hostnames. But, yes, we definitely do this for domains so depending on if you see the hostname as a client descriptor or as a requested domain, differences in capitalization are actually expected.
Once we have more information, we can go and take a closer look again.