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If the intent is to have it detected as the MIT License, I believe there is more you'd have to fix with the license file. While it does include the MIT license text, it also includes a link and extra text on the copyright line, which may also be part of why licensed is confused. Additionally, if you look at the fork's repository page, GitHub still shows a generic "View License" link -- suggesting that licensed is still confused about which license the repository is under. Although it's possible that licensed only checks against the master branch, as the fork's master branch still has the backticks.
@adamruzicka I've seen some repositories that will use no extension, some that will use .MD, and a couple that even use .TXT. As far as I'm aware, the file extension does not matter -- I believe it only matters that the filename is the case-insensitive name