As wiklendt says, "VBE" = "Visual Basic Editor".
It was only referred to as such
with the introduction of VBA AFAICR. (The editor then being a separate window).
I'm unclear on the 97 reference or what functionality was lost.
(I recall some lamenting the loss of the Expression builder in the VBE? Just wow - could
not care less if I tried. Learning how to build expressions is such a fundamental Access skill that it is a good thing to lose IMO, maybe that's a bit cruel of me

.
Anyhoo... Intellisense (which is all the capitalisation is about) is the VBE's attempt to be helpful. Sometimes it's outstanding in that capacity, other times it's guessing wildly and annoyingly.
I'd agree that you'd probably have a variable, object or procedure named as such.
For it to capitalise
immediately upon typing it implies that something else is afoot though. (Perhaps a Timer running causing a syntax check).
Generally if you ever get the phantom capitalisation - for example a built in object appears incorrectly such as, say, db.openrecordset - then just force it back by temporarily (very quickly) creating a proc of the name you'd expect.
Sub OpenRecordset()
End Sub
Then delete it.
Cheers.