I confirmed this bug when testing and submitted a commit to fix this for the username input.
It will lowercase it with the commit:
It will show created success message with upper case characters but all characters in DB and emailid is lowercased now so should not have issues like this once merged into installer.
I knew how to fix it…because I reported this bug months ago. At that time I had entered a slew of emails by cut and paste from a list and had people using them.
I think it was in thew middle of the upgrade mess with the password encryption.
This time it was just one and I just forgot to leave it all lower case. It failed on the first email test.