Steps to reproduce
Uncapitalized internal links are automatically capitalized if the location of the linked file is changed. An example of what I mean by that:
I use Obsidian for DND. I have a collection of short .md files with details for various weapons, including links to any relevant weapon properties, which also have their own short .md files. The weapon property files all have capitalized names, but their links were made with lower case letters (i.e., Reach.md is linked with [[reach]]).
BUT, when I renamed the superfolder that contains the Reach.md file, every instance of [[reach]] was auto-updated to say [[Reach]]. The superfolder also contains many other files, and now I have hundreds of links that weren’t supposed to be capitalized that now are. I would call this data loss.