Is naming a character after a lore figure still a violation of the naming policy?

Yes, with stipulations.

Generally speaking, the major lore characters should have their names reserved and not be accessible. it is entirely possible for some characters that may not be as visible to have been overlooked or, due to their low profile, not considered to have names that need to be prohibited.

I can’t speak for names that are minor in Classic that gain notoriety. It may be best to avoid using them, but it really depends on.

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