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Azure DevOps tags are documented as case sensitive when a tag is first created, but that only applies at the project level, across different tags. On a single work item, tag matching is case-insensitive. So if "Release 22.4 comm" (or any casing of it) is already applied to that work item, or already exists as a tag you've used before, typing "Release 22.4 Comm" will just match back to the existing one instead of creating a distinct second tag. That's why your capital "C" isn't sticking, it's not being rejected, it's being recognized as the same tag.
To fix it: check if a lowercase (or differently cased) version of that tag is already applied to the work item or exists in your project's tag list. If it is, either keep that casing going forward for consistency, or rename the existing tag definition to your preferred casing. Renaming isn't available from the work item form, it needs to be done through the REST API's tag rename endpoint (needs Update tag definition permission), and it updates the casing everywhere that tag is used.
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