Looking at the code, it seems the removal of any (extra) text from the game names is intentional and not a bug, probably to eliminate confusion when the system name is appended.
So if the game is named "Street Figther II' (World)", then in the collection it would be displayed (by default) as "Street Figther II' (arcade)" instead of "Street Figther II' (World) (arcade)". With the Show System Name in Collections option disabled, the game is displayed as "Street Figther II' (World)", since there's no additional (arcade) suffix to be displayed.
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