From a technical standpoint, the windows NTFS filesystem is designed inherently case sensitive, just windows doesn't allow creating case sensitive files.
Connecting an NTFS drive to linux, you can create two separate files readme.txt and Readme.txt.
Using windows, you can see both files in the filesystem, but chances are most (if not all) software will struggle accessing both files, opening readme.txt might instead open Readme.txt or vice versa.
NTFS was designed back in the mid 90s, when the plan was to have the single NT kernel with different subsystems on top of it, some of those layers (i.e. POSIX) needed case sensitivity while others (Win32 and OS/2) didn't.
It only looks odd because the sole remaining subsystem in use (Win32) barely makes use of any of the kernel features, like they're only just now enabling long file paths.
For a few years now, Windows has had the capability of marking certain directories as case-sensitive. So you can have a mixed-case-sensitivity filesystem experience now. Yeah. :/
I once ran into a bug in an Arduino program where it wouldn't compile. The author blamed my "broken environment". Turned out, he had included "arduino.h" instead of the correct "Arduino.h".
Although you can use case insensitive filesystems with Linux, and case sensitive filesystems with macOS. I believe the case sensitivity is a function of the specific filesystem --- but yeah, practically, the root for Linux is always case sensitive, and APFS ain't is only if you ask it to be ( https://support.apple.com/lv-lv/guide/disk-utility/dsku19ed921c/mac ).
When case insensitivity is the default I always wonder how many apps unknowingly rely on that due to typos somewhere. I encountered this once while porting a Windows/macOS app to Linux that someone imported a module with the wrong case and nobody noticed
Case-insensitive filesystems are for maniacs. They are only causing trouble. Ever had two folders with the same name but different capitalization in windows? You see both, but whichever you click it will always open the same one, while the other can't be accessed.
Psychopath behavior.
That's because NTFS isn't case-insensitive. If it was there'd be no two folders. Windows is a case-insensitive operating system running on a case-sensitive file system. It's pretty clear Microsoft wanted case sensitivity and then realised how much legacy software that'd break.
Makes changing the case of a file/folder a lot easier though. Windows you have to rename it to something else then rename it again just to change case but Linux you can just...rename it. It's a small thing but it's something