Does that mean that they worked with the Japanese company of it for picking the names?
Indeed they likely did, as they chose the new title for the show with them.
So you can't lay the blame for this fully on Funimation's shoulders, the Japanese have a hand in it too. In fact, a lot of really stupid changes in R1 releases are directly caused by licensing demands from the Japanese.
As Mike Toole said, "No one screws up anime better than the Japanese."
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