It's only been a year, but the new release gave me an excuse to look this up again.
Turns out in image_processing.php (
resourcespace/include/image_processing.php at master · resourcespace/resourcespace · GitHub) uses a switch that checks for the variable merge_filename_with_title_option ( merge_filename_with_title_default in config), but then uses the selection in the language file as a lookup for the name. So since
$lang['merge_filename_title_replace'] = 'Replace'; is in en.php, but for us in Norwegian (and other languages) this will not match the setting and the form will not merge filename with the title of the resource.
So if no option is chosen, it defaults to the setting in config.php (which is set to replace), but then it will only do what we want it do if the user language is in English because it won't match in other languages.
This would all work if the form to set this default setting was available, but I it appears the form option (in user preferences or system settings) is invisible so we can never set this option.
(just replacing the value in the language file solves this temporarily at least).
My suggestion is either to make this option properly available, or make the code non-language dependant.
(I might have to be more active on github at this point, I've found a few other bugs/changes in 11.0)