msys2 bug: cannot create directory

[yxl0756]

mkdir v1.lnk                      -- ok
mkdir v1                          -- mkdir: cannot create directory ‘v1’: File exists
This bug affects other software. e.g.  git

[1480c1]

C:\Users\cddeg> New-Item -Type Directory v1.lnk

    Directory: C:\Users\cddeg

Mode                 LastWriteTime         Length Name
----                 -------------         ------ ----
d----          10/13/2021 11:42 AM                v1.lnk

C:\Users\cddeg> New-Item -Type Directory v1

    Directory: C:\Users\cddeg

Mode                 LastWriteTime         Length Name
----                 -------------         ------ ----
d----          10/13/2021 11:42 AM                v1

C:\Users\cddeg> rm v1
C:\Users\cddeg> rm .\v1.lnk\
C:\Users\cddeg> bash -l

cddeg@ccom-laptop ucrt64 /c/Users/cddeg
$ mkdir v1.lnk

cddeg@ccom-laptop ucrt64 /c/Users/cddeg
$ mkdir v1
mkdir: cannot create directory ‘v1’: File exists

I can confirm this isn't a windows specific issue, don't have cygwin to test it specifically though

[yxl0756]

$ git --version
git version 2.33.0

$ ls test/v1.lnk -la
total 0
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:06 .
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:15 ..
-rw-r--r-- 1 yxl0756 None 0 Oct 14 00:06 a.txt

$ ls test/v1 -la
total 0
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:15 .
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:15 ..
-rw-r--r-- 1 yxl0756 None 0 Oct 14 00:07 b.txt

$ ls test -la
total 4
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:15 .
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:08 ..
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:16 .git
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:15 v1
drwxr-xr-x 1 yxl0756 None 0 Oct 14 00:06 v1.lnk

$ git clone test test2
Cloning into 'test2'...
done.
fatal: cannot create directory at 'v1': File exists
warning: Clone succeeded, but checkout failed.
You can inspect what was checked out with 'git status'
and retry with 'git restore --source=HEAD :/'

Then I use git-for-windows

$ export PATH=/d/works/mozillabuild/git-win/cmd:$PATH

$ git --version
git version 2.33.0.windows.2

$ rm -fr test2

$ git clone test test2
Cloning into 'test2'...
done.