@@ -5221,10 +5221,10 @@ it.layer(layerGitManagerTest)("GitManager", (it) => {
       yield* initRepo(repoDir);
       NodeFS.mkdirSync(NodePath.join(repoDir, ".github"));
       NodeFS.writeFileSync(
-        NodePath.join(repoDir, ".github", "pull_request_template.txt"),
+        NodePath.join(repoDir, ".github", "PuLl_ReQuEsT_TeMpLaTe.TXT"),
         "## What changed?\n\n## Verification",
       );
-      yield* runGit(repoDir, ["add", ".github/pull_request_template.txt"]);
+      yield* runGit(repoDir, ["add", ".github/PuLl_ReQuEsT_TeMpLaTe.TXT"]);
       yield* runGit(repoDir, ["commit", "-m", "Add pull request template"]);
       yield* runGit(repoDir, ["checkout", "-b", "feature-create-pr"]);
       const remoteDir = yield* createBareRemote();
 
@@ -17,14 +17,20 @@ const SINGLE_TEMPLATE_PATHS = [
   ".github/PULL_REQUEST_TEMPLATE.md",
   ".github/pull_request_template.txt",
   ".github/PULL_REQUEST_TEMPLATE.txt",
+  ".github/PULL_REQUEST_TEMPLATE.TXT",
+  ".github/PuLl_ReQuEsT_TeMpLaTe.TxT",
   "pull_request_template.md",
   "PULL_REQUEST_TEMPLATE.md",
   "pull_request_template.txt",
   "PULL_REQUEST_TEMPLATE.txt",
+  "PULL_REQUEST_TEMPLATE.TXT",
+  "PuLl_ReQuEsT_TeMpLaTe.TxT",
   "docs/pull_request_template.md",
   "docs/PULL_REQUEST_TEMPLATE.md",
   "docs/pull_request_template.txt",
   "docs/PULL_REQUEST_TEMPLATE.txt",
+  "docs/PULL_REQUEST_TEMPLATE.TXT",
+  "docs/PuLl_ReQuEsT_TeMpLaTe.TxT",
 ] as const;
 
 const TEMPLATE_DIRECTORIES = [
@@ -101,6 +107,49 @@ it.effect.each(SINGLE_TEMPLATE_PATHS)("recognizes $0", (relativePath) =>
   ),
 );
 
+it.effect.each([".github/PuLl_ReQuEsT_TeMpLaTe.MD", "docs/PULL_REQUEST_TEMPLATE.Md"])(
+  "recognizes Markdown case variant $0",
+  (relativePath) =>
+    runWithTempDirectory((cwd) =>
+      Effect.gen(function* () {
+        yield* writeTemplate(cwd, relativePath, "Markdown template");
+        yield* commitTemplates(cwd);
+
+        assert.strictEqual(Option.getOrUndefined(yield* detectTemplate(cwd)), "Markdown template");
+      }),
+    ),
+);
+
+it.effect("finds case variants from a repository subdirectory", () =>
+  runWithTempDirectory((cwd) =>
+    Effect.gen(function* () {
+      const path = yield* Path.Path;
+      yield* writeTemplate(cwd, ".github/Pull_Request_Template.TXT", "base template");
+      yield* writeTemplate(cwd, "nested/README.md", "project");
+      yield* commitTemplates(cwd);
+
+      assert.strictEqual(
+        Option.getOrUndefined(yield* detectTemplate(path.join(cwd, "nested"))),
+        "base template",
+      );
+    }),
+  ),
+);
+
+it.effect("does not let unrelated nested documents exhaust the template listing", () =>
+  runWithTempDirectory((cwd) =>
+    Effect.gen(function* () {
+      yield* writeTemplate(cwd, "docs/Pull_Request_Template.TXT", "docs template");
+      for (let index = 0; index < 600; index += 1) {
+        yield* writeTemplate(cwd, `docs/guides/${index}-${"a".repeat(180)}.md`, "guide");
+      }
+      yield* commitTemplates(cwd);
+
+      assert.strictEqual(Option.getOrUndefined(yield* detectTemplate(cwd)), "docs template");
+    }),
+  ),
+);
+
 it.effect("reads templates from the requested base tree", () =>
   runWithTempDirectory((cwd) =>
     Effect.gen(function* () {
 
@@ -29,7 +29,13 @@ const TEMPLATE_DIRECTORIES = [
   "docs/PULL_REQUEST_TEMPLATE",
 ] as const;
 
-const TREE_PATHS = [...TEMPLATE_PATHS, ...TEMPLATE_DIRECTORIES] as const;
+// Recursive listings can exhaust the byte cap on unrelated documents and hide a valid template.
+const TREE_PATHS = [
+  ".",
+  ".github/",
+  "docs/",
+  ...TEMPLATE_DIRECTORIES.map((directory) => `${directory}/`),
+];
 
 type ExecuteGit = SourceControlHost.SourceControlHost["Service"]["git"]["execute"];
 
@@ -142,7 +148,7 @@ export const detect = Effect.fn("gitHubChangeRequestTemplate.detect")(function*
     const result = yield* executeGit({
       operation: "gitHubChangeRequestTemplate.listTemplates",
       cwd,
-      args: ["ls-tree", "-r", "-z", "--full-tree", treeish, "--", ...TREE_PATHS],
+      args: ["ls-tree", "-z", "--full-tree", treeish, "--", ...TREE_PATHS],
       maxOutputBytes: TREE_LIST_MAX_BYTES,
       appendTruncationMarker: true,
     });
@@ -151,15 +157,17 @@ export const detect = Effect.fn("gitHubChangeRequestTemplate.detect")(function*
     }
 
     const entries = parseTemplateTreeEntries(result.stdout);
-    const entriesByPath = new Map(entries.map((entry) => [entry.path, entry]));
     for (const templatePath of TEMPLATE_PATHS) {
-      const entry = entriesByPath.get(templatePath);
-      if (!entry) {
-        continue;
-      }
-      const template = yield* readTemplateBlob({ cwd, executeGit, entry });
-      if (Option.isSome(template)) {
-        return template;
+      const candidates = entries
+        .filter((entry) => entry.path.toLowerCase() === templatePath.toLowerCase())
+        .toSorted(
+          (left, right) => Number(right.path === templatePath) - Number(left.path === templatePath),
+        );
+      for (const entry of candidates) {
+        const template = yield* readTemplateBlob({ cwd, executeGit, entry });
+        if (Option.isSome(template)) {
+          return template;
+        }
       }
     }