Now I am confused, Matthias — where does "TEXNAME" come into it ?  In your example, there was no instance of "TEXNAME" but rather a direct use of the tilde :
$ lualatex "/home/matt/reports/test~report/report.tex"
Are you now saying that that was not the actual test, but that what you actually wrote was :

$ lualatex TEXNAME

where "TEXNAME" was an logical name, environment variable, or similar ?

Anyhow, regardless of whether or not the tilde was explicit or implicit, it will be processed by TeX, and will therefore be subject to expansion.
Consider this from another perspective — if you were to write :

$ tex \expandafter \def \csname my:file\endcsname {Source.tex}\input \csname my:file\endcsname

you would expect TeX to try to open a file "Source.tex", would you not ?  And indeed it does :

This is TeX, Version 3.14159265 (TeX Live 2020/W32TeX) (preloaded format=tex)

*\end
! I can't find file `Source.tex'.
<to be read again>
                   \end
<*> \end

(Press Enter to retry, or Control-Z to exit)
Please type another input file name:

Thus /everything/ that follows the imperative "tex" at the command prompt is interpreted as TeX source, and is not interpreted specially just because it /might/ be a file name.

/Philip Taylor/

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