Created attachment 149016 [details]
Screenshot

STEPS TO REPRODUCE
1. Create a folder structure like the following

Topfolder
|
|--- subfolder_1
|          |
|          |--- test.txt (content: "test")
|
|--- Subfolder_1
             |
             |--- Test.txt (content "Test")

where the "test" files and subfolders only differ by a lower/upper case name.

2. Copy the folder Topfolder onto a FAT32* drive
* or probably any other case insensitive file system


OBSERVED RESULT

KIO creates 

Topfolder
|
|--- Subfolder_1

and then prompts the `folder already exists dialog` and asks whether to write `subfolder_1` into `subfolder_1`.

If you click "overrwrite", it will then prompt the `file already exists dialog` and asks whether to overwrite `test.txt` over `test.txt`. 

If you approve that, the final folder structure will look like this:

Topfolder
|
|--- Subfolder_1
             |
             |--- test.txt (content "test")


EXPECTED RESULT
KIO asks whether to write `subfolder_1` into `Subfolder_1` and whether to overrwrite `Test.txt` with `test.txt`.


SOFTWARE/OS VERSIONS
Operating System: openSUSE Tumbleweed 20220518
KDE Plasma Version: 5.24.5
KDE Frameworks Version: 5.94.0
Qt Version: 5.15.2
Kernel Version: 5.17.7-1-default (64-bit)
Graphics Platform: Wayland