This is in fact expected behaviour because Crowd will convert the uppercase username to lower case when the "enforce lower case" option is set, meaning Crowd will convert any upper-case and mixed-case information, (usernames etc), to lower case before passing the information to the application.
So enabling this option should only be done when the application is expecting lowercase usernames because it will cause incoherence if it is enabled and you pass content containing uppercase characters as described in this document: https://confluence.atlassian.com/display/CROWD/Enforcing+Lower-Case+Usernames+and+Groups+for+an+Application
All the best,
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