I agree that the name is not without issues, but you can not undo history.
People coming from Reddit are searching for communities with the same name, and they are usually not explicitly looking for a TERF community when doing so. Thus if they find our, explicitly not TERF friendly community under this name, it is better than some actual TERF name-squatting it and using it for TERF propaganda.
I am willing to change my mind on this, but for now I don't think the community name alone warrants administrative action as long as the community is and remains explicitly not transphobic.