The Wikipedia says it comes from a French misspelling of an indigenous word that could be used to describe the people. So it might be a little less offensive than that, but still not great.

[–] Meowoem@sh.itjust.works 2 points 9 months ago

In English we use Norse meaning northern people, unsurprisingly it is the word originally used to describe them by people south of them. Those people now called Germans get their name from ceaser when he invaded from Italy, named by the Greeks, who in turn derive their modern name from the Romans because they called themselves Hellanes... Spain gets it's name probably because it was located near a rabbit on a Roman coin... They also named Britain of course and all of them would be the ones going to the new world and naming things there

It's weird but it's pretty common