Absolutely. The issue, in my mind, isn't one of functionality, or even practicality. It is just a new C# user issue.
I can clearly remember believing that names were never arbitrary. I remember often thinking that if the name of one thing exactly matched the name of another that it had to be that way.
Since this isn't the case, and you aren't trying to teach how the C# compiler can handle this case, I would recommend taking the route of not picking words that do not have matching forms for their Singular and Plural versions. Instead of equipment picking "Item/Items" or if item is too vague/overloaded picking "Weapon/Weapons" or "Supply/Supplies" sidesteps the confusion.
I understand the goal here isn't to push one convention over the other, especially in ambiguous cases like this one, but in my opinion picking cases where there aren't competing conventions (when it isn't really relevant to the material) is probably preferable.
Obviously the knowledge still transfers, and in the best case a new user learns the valuable point that C# is context aware, and knows when you mean types vs variables even when those are the same words, but it still seems to me that, that lesson is tangential to the discussion and potentially distracting.