Em… We use this feature, I mean ability to have both group and user with the same name. And I found it awesome. We divide users into their own private groups to have personal private category for support purposes.
There is no any problem to differ user from group by icon or by typing not from the 1st letter in groupname:
By fixing this, I am afraid to have problems in my customer support workflow. What about existing pairs of users and groups with the same name? This change may cause really pain for my staff and customers.
Can you leave it as is?