Folders renamed through Windows Explorer keep the original name

I eventually searched for all desktop.ini files in my directory tree and removed them all. The issue got fixed instantly:

• Folders finally showed their actual name
• New renames actually happened at file system level

Such files contained entries like this:

[.ShellClassInfo]
LocalizedResourceName=This is the new name

... that seems to be a feature rather than a bug:

LocalizedResourceName

Specifies a resource module and the string ID to use as the name of the folder to display when viewed using the File Explorer or the Shell.

I don't have the faintest idea of how Windows ever came to the conclusion that I wanted to translate the folder rather than renaming it.