capitalize-word unwilling to capitalize 'god'

[Dan Jacobson]

What's the deal? In Text mode ($ emacs file.txt), put the cursor upon
the first apostrophe of
'god'
and hit ESC C, and like, no bananas, man.
However, ESC L, ESC U do their thing normally.
If I want 'God', then I must put the cursor on the g, else no
potatoes, whereas the other two work fine from even before the first
apostrophe. Indeed, ESC C acts like ESC L if not done from the g.
emacs-version "21.4.1"