Actually, according to Hackett, those units sort of adopted N7 as their unofficial nickname. They weren't actually N7. The theory still works though.
The teams did not "adopt" the name. The rank and file of the Alliance military were referring to them as such and the higher-ups let it go as long as it wasn't getting out of hand.
Think of it as the way that "Xerox" went from referring to a specific brand of copier to how it became diluted to the point of general usage.
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