XP isn't a DOS interpreter. XP is an OS and DOS is another OS.
XP has two programs that interpret the old DOS commands (and some more):
- COMMAND (fairly compatible with older versions)
- CMD (extended)
And, from the picture, the error is clear, but not how you managed to get it shown. I think nobody will get it. And I even wonder if it can be considered an error.
If M$ has such trivial flaws in the design of their products then there is almost nothing to comment about real security loopholes.
PS Who doesn't get it. MYTEST~1 is a short name for MyTestFolder (check it out with dir /x), but in this case an attempt has been made to copy a folder named MYTEST~1 from OneLevelDown to MyTest.