There is a work around for this that i can explain very simple.
DO NOT NAME THE FUNCTION BEFORE YOU ADD VARIABLES!
When i set a name/copy a name to the function from a different BP character, i can’t change the names on the variables.
But if i add the variabels first, then change the name of the function. The variable names stay.
I am facing the same issue in Unreal Engine 5.0.3. I cannot create a local variable with the same name in two different functions within the same blueprint.