It's still not fixed in 1.7.7.3. This problem has persisted for (AFAIK) three versions of Presta over many years.
Here's my version of the workaround described above. It's not entirely satisfactory, but at least we don't have customers mistakenly thinking they are getting free shipping. Instead, they might think they can only Click & Collect, but IMO that's a lesser evil.
International > Translations
Then choose “Modify Translations” > “Themes Translations/classic/English”, then click “Modify”
Then in the left hand column you’re looking for Shop > Theme > Checkout
Then scroll down to find Entry Captioned “Free” and edit it to "Click & Collect"
**But really, this is something for the core developers to fix.**