I can't find the other thread that referred to this. The .LRN file-storage creates folders for assignments, lecture notes, handouts, exams, etc when a class is created.
A message key is put into cr_folders.label for dispaly, but this message key is also put into cr_items.name. So the cr_items.name is <span>#</span>dotlrn-fs.Assignments#. cr_items.name is being used to calculate URLs so this breaks webdav support.
I think having the translated label should be sufficient, that should be used for all display functions.