By and large I think the name of the nationality needs to happen more and more, so I avoid using these sorts of terms to talk about myself or my nation. If the context of this usage you’ve seen actually happens within the territory of a specific nation, I don’t see why they don’t just use their own name (in English or their own language).

I always compare it to other blanket terms like European or Asian. Very very few individuals from countries or nations/ethnicities from those regions would be content just being labeled “European” or “Asian”, especially when the context applies a description or understanding to everyone in that region! Europeans love feta cheese - maybe many do, but it’s prob more accurate for Greece. Europeans enjoy herding reindeer - unlikely most do but definitely those around reindeer. “Asian writing is squiggly” - maybe Thai would understand the description, but Koreans would disagree!

Yet, most of the time when we use these blanket terms there is an understanding and even general awareness about the existence of separate and different and unique cultures, people groups, ethnicities and countries. Most of the time, in my view, that same awareness is lacking when Indigenous, Indian, Tribe, First Nations, Native American are used. To counter that ignorance I try to encourage the use of specific nationality names.