The same with other DOS device driver names. Yes, that's old.
PRN, AUX, NUL, LPT1, COM1.
Although, you should be able to create folders with these names in Linux or Mac.
I can't do it in Windows 7. It's strange how these names are being used for no real reason, if they had, why would some folder you just created be part of something that already exists. Pretty complex stuff it all seems to me.
I managed to do it after a while. Wasn't that difficult. No command prompt involved either.
I edited the image though somewhat, I was bored. But the encircled area remains untouched.
I've known this for a while... nothing really special... Of course there are many ways to avoid this, but, let's be honest, who would name a folder "con"?