Library used (Espresso, Runner, Rules etc.):
Version used: 3.0.1

What steps will reproduce the problem?
1. Put an AppCompatTextView in your UI with android:textAllCaps="true" and android:text="Low Stock" in your XML (I'm using android:id="@+id/lowStockTV")
2. Launch your activity through a Test. AppCompatTextView will be shown as "LOW STOCK"
3. Check that that view has text with Espresso in the following way:

onView(withId(R.id.lowStockTV))
.check(
matches(withText("LOW STOCK"))
)

How are you running your tests (via Android Studio, Gradle, adb, etc.)? Android Studio

What is the expected output?
The expected output is obtaining a valid ViewInteraction with no throw (AssertionFailedWithCausedError)

What do you see instead?
AssertionFailedWithCausedError with message:

'with text: is "LOW STOCK"' doesn't match the selected view.
Expected: with text: is "LOW STOCK"
Got: "AppCompatTextView{id=2131296406, res-name=lowStockTV, visibility=VISIBLE, width=1002, height=57, has-focus=false, has-focusable=false, has-window-focus=true, is-clickable=false, is-enabled=true, is-focused=false, is-focusable=false, is-layout-requested=false, is-selected=false, layout-params=android.widget.LinearLayout$LayoutParams@5155c10, tag=null, root-is-layout-requested=false, has-input-connection=false, x=39.0, y=39.0, text=Low Stock, input-type=0, ime-target=false, has-links=false}"

if I use:
onView(withId(R.id.lowStockTV))
.check(
matches(withText("Low Stock"))
)

it works perfectly, I get my ViewInteraction, but that's not why I see in my UI