Can the batch set init function be configured to differentiate between upper and lower case letters?

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Yes, the batch set init function can be configured to differentiate between upper and lower case letters using the "if" statement and the "==" operator. For example:

set initial=a
if "%initial%"=="A" (
   echo The initial is uppercase
) else (
   echo The initial is lowercase
)

In this example, the script sets the variable "initial" to "a" and checks whether it is equal to "A" using the "if" statement and the "==" operator. If it is equal, the script echoes "The initial is uppercase". If it is not equal, the script echoes "The initial is lowercase".