It would display the Portuguese name if we assign the name as default for Portugal. But 1) that really shouldn’t be necessary since it applies to all Portuguese names used in Portugal and 2) the guidance on that screenshot does say “please do not add names for every place where the name is used, only for places that conflict with other places”.
It’s a pretty common issue and I do hope the staff can find a solution. See previous discussions here, here, here, here, and here, among others.