The locale-based insensitivity of menu names appears to be documented only in the
archived changelog of 1.0.43.03:
Changed the following to use locale case insensitivity vs. "A-Z only" insensitivity: hotkey names, hotstring abbreviations, menu names, Input's MatchList, and Gui Tab.
It seems that prior to Vista, the comparison functions which respect locale were the only obvious way to treat non-ASCII characters such as à and À as equivalent, and that was the main reason for this change.
However, Vista and later have CompareStringOrdinal, which supports non-ASCII characters but uses the "operating system uppercase table information" and is not locale-dependent. This type of comparison is used for NTFS file names and some system objects, such as mutexes and named pipes. Had I known about this before v2.0.0, it might have made sense to make it the default method of case-insensitive string comparison.
Given the purpose of specifying an existing menu item name, the general behaviour of "case insensitive" comparisons and lack of specificity in the actual documentation, I have decided to change Menu Add to ignore locale (consistent with variable names, GUI control names, etc.) in v2.1.
Sort Strings Ordinally lists cases where CompareStringOrdinal differs from lstrcmpi, which is used by the "locale" method. Using this, I was able to confirm some cases where #Include's "include only once" default behaviour fails, which will be fixed by switching to CompareStringOrdinal in v2.0.11.