No, the VFAT driver doesn't do anything even slightly resembling that.

In general "what DOS did" doesn't cut for a modern system with page and dentry caches and multiple tasks accessing the filesystem without completely horrible performance. I would be really surprised if Windows handled all those cases right with disk caching enabled.

While rename can be atomic in some cases, it cannot be in the case of cross directory renames or when the new filename doesn't fit in the existing directory sector.