Thanks for the response. My settings were “Don’t Alter (title text isn’t modified in any way)”, “Add Title to ‘Alternative Text’ Field?” and “Add Title to ‘Caption’ Field?” The rest was disabled. The problem occurred with any mixed case filename containing hyphens.
I think this is a WordPress bug. If the plugin is disabled and you upload an image, WordPress no longer creates a correct media item title. As you said, it formats the title to lower case and it doesn’t remove the hyphens from the filename as it did before 4.6. However, it does not format the filename to lower case. This doesn’t make sense.
As a workaround, I replaced “$title = $uploaded_post_id->post_title;” in your plugin with
$file = get_attached_file($id);
$path = pathinfo($file);
$title = $path[‘filename’];
I also enabled “Remove Hyphens” in the plugin now. The only problem is that this also removes hyphens that belong to the media title (and not just to the filename).