In the newest DO verson, the rename dialog can not actually replcace the file with the same name. Instead,it just rename the new file with the "(1)" following.
I think rename command is a very strong function with many kinds functions which I have ever meet amoung softwares. So I hope what I choose to be stronger a bit more.
It works fine here. If you click the arrow for more options it explains in more detail what the (top) default action is, and also gives you a second action which may be what you actually want instead: