I don't understand where the problem arises exactly, there is no racist intent in its usage here, it's just a word, it's an empty container and we fill it with meaning. In this context it just means "customization", sure it's not a completely made up term and its origin is lowkey racist, but, as you stated yourself, not many know at all of that connotation, they go on to use it despite never meaning to use bad language on purpose, because it has simply acquired a different meaning, it was just the lingo they happened to find in the community.
There's plenty of words that had historically been bad and then became good, same the other way around. I believe that's the case here as well.

Even so, if an alternative word is proposed and favored, even just plain "customization" (which I feel would be better than replacing it with a lingo word, as it would make it easier for newcomers to understand what is being talked about more easily), I wouldn't be opposed, the main thing is to be able to convey the meaning, that's what that matters most in the end