I just tested this, As far as I am concerned this is not Normal or Expected.
My test was not over a network but to a local Folder.

When I renamed the Sidebar item it renamed the Original. BUT the sidebar item still reflected the old name,
it did not change to the New name.

After Re-launching the Finder the Name of the sidebar item then changed to the new name.

Did the test again the new name change straight away.

I think both name change issues are bugs.




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mh

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