Currently, it's very easy for users to create an account that closely resembles another user's account. For example, you can create an account named "Сarl" (Cyrillic S) when "Carl" (Latin C) already exists. This causes a potential issue with impersonation. Sure, the ID will be different, but to most people, those users would look the same—opening the door to defamation, harassment, etc. This can also happen with invisible or blank characters. There's already a thread for that here: https://feedback.vrchat.com/feature-requests/p/security-disallow-invisible-characters-in-name.

The solution: names that look alike should be normalized to a standard character set where "Сarl" (Cyrillic S) gets transformed to "Carl" (Latin C). This way, not only is the user easier to find, but if someone already has the name "Carl," we don’t accidentally—or intentionally—impersonate them. For names that currently collide assign a random name with an ID and offer a name change. (The currently more active users should likely receive priority for this.)

To clarify, they should still allow names that are effectively the same but look alike, so "Carl" and "𝕮𝖆𝖗𝖑" would still be fine, as they don’t resemble each other visually.