TypeScript follows the case sensitivity rules of the file system it's running on. This can be problematic if some developers are working in a case-sensitive file system and others aren't. If a file attempts to import fileManager.ts by specifying ./FileManager.ts the file will be found in a case-insensitive file system, but not on a case-sensitive file system.

When this option is set, TypeScript will issue an error if a program tries to include a file by a casing different from the casing on disk.