The big bold title for this recording says: Brynhildur táttur
and was last edited to proper “Faroese caps”.
What is the reason that the two smaller titles («Brynhildur Táttur» on the two release titles «Buch der Balladen») does not have the same capitalization?
The names in your ID card and in your driver’s licence are independent (if you have one changed, the other document won’t magically change, too). Still, in most cases you want them to be in sync; and if there is a spelling mistake in both documents, it doesn’t make sense to leave one uncorrected.
They are only independent if using the MusicBrainz classical guidelines, if not (as I think is the case here) the recording title is meant to be the same as the most common track title (although I thought it was the first release they were added to)
The recording title should generally be based on the titles of tracks using that recording:
If the recording has tracks from official releases, choose the most
common title from official tracks as the basis for the recording title. Otherwise, choose the most common track title.