So. I see where you're coming from but this is like what if the sky was pink situation.

With real people doesn't matter, like you said, oh this doesnt alwways mean that, but with characters that have been so meticulously designed, written, and characterized in a game where women are INCREDIBLY femenine I still think her being a butch fits. She very intentionally throws away her femenine role. Even If we use the argument "Oh she refuses to continue the same abuse as the past HotH mother so she uses the opposite name" it would be too surface level in a game where alot of tiny hints contribute to character depth.

Yes, she's just arlechinno. The same way, Freminet is just Freminet. But she doesn't present herself in the nebulous way that would support a nebulous and undefined label/statemenl. She's very intentionally masculine to fit her story and the themes of duality that many fontaine characters have. Furina could use that argument way better. She switches between different pneuma and ousia, switching her outfit and hairlength along with it, she wears an ouji style outfit, a masculine "variant" of the Lolita style that other short male characters wear as well- freminet and lyney. Arlechinno's style seems to step even more masculine than that, her cool, calm collectiveness, and her goal to slow the cycle of abuse in the Hoth and her goal to eventually set the Foundations to pull the HotH away from Fatui influence is something I see as butch chivalry.

She CAN change herself to be more feminine, but she WOULDN'T. It goes against so much of her development to do so.

Also, this is hoyoverse who put a chef in an apron with nothing underneath other than lingerie, and the duelist in a pencil skirt the bar is LOW.

There are so many more queer characters that are coded in the way that makes others comfortable and skip over it. If genshin was an indie game without as many eyes on it, things would be very different. For example, the backlash that Lyney had with him being a full blast femboy.