Comment 1 for bug 77740

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Alexander Belchenko (bialix) wrote :

This is because bzr don't handle well case-insensitive filesystem (i.e. Windows FAT/NTFS). So when you manually change the case of file it will be marked as removed.

There is planned to provide support for case insensitive filesystems, but this task has low priority.
https://blueprints.launchpad.net/products/bzr/+spec/case-insensitive-filesystems