PEP 8 suggests class names and type variable names to be in CapWords case. However:

>>> import string
>>> string.capwords('CapWord')
'Capword'

Wondering if this this an oversight or am I misunderstanding something?

'CapWord' is a single word so string.capwords() works as documented:

    Split the argument into words using str.split(), capitalize each word
    using str.capitalize(), and join the capitalized words using str.join().

https://docs.python.org/3/library/string.html#string.capwords

You can also see this in the REPL:

    >>> "CapWord".split()
    ['CapWord']
    >>> _[0].capitalize()  # '_' is a shortcut for the latest command
    'Capword'

Thanks for the reply.  I think I was not clear - the behavior of string.capitalize() is correct as per documentation. But the PEP8 referring to CapWords as cap words case is the bit I am not clear about, since `Capwords` back when you call `string.capwords('CapWords') and not `CapWords`.

(Just reopening so that it doesn't get lost)

In PEP 8 'CapWords" does not refer to the capwords function, as is fairly clear from context.  A big clues is that it is not spelled 'capwords', and case matters in python function names :)  I can understand your getting confused, but that sentence is trying to list the various names give to this style of naming, and "CapWords" is one of those names, so I don't know that we should delete it.