These things are still a bit in limbo ... basically the subheader is also a header, and therefore will inherit values applied to header. Setting
subheader:normal basically means non-bold, so that will not reset the uppercase setting applied to headers ...
To be honest, if you need better control of these elements, you should add some rules to the
custom/css/ section in your panel. You will need to familiarize yourself with basic CSS, but it gives more control. Basically leave your font-settings string quite simple, and try to add this instead to custom/css in your panel:
h1, h2, h3, h4 {
text-transform: uppercase;
}
h2.subheader {
text-transform: none;
}