Homepage URL is redirecting to Sub-directory - CDN is not case sensitive - Server

My CDN is not case sensitive, my homepage is like: domain.com/example. at the moment we had duplicate content problems as there was not a 301 redirect from domain.com/Example (Capital Letter)



To resolve duplicate content issues we set up a 301 redirect from domain.com/Example to domain.com/example.

As my CDN is not case sensitive, it does not recognise the capitals so now what is resolving is the following:

domain.com/Example 301 redirect to domain.com/Example

domain.com/example 301 redirect to domain.com/example

also domain.com 301 redirects to domain.com/example --> (requested by client)


So if this is happening that means that there is not a page returning a header response 200? if so:

Is that bad for SEO? and any solutions for this issue?
Shall I remove the redirects? for domain.com/Example to domain.com/example and put a canonical tag? I will loose all my links as the 2 version have pointing links?

is it really bad that all pages are redirecting to themselve? will Google get confuse as which page is the one that is valid?