God new what He was doing. Plus, the history of God’s own people in the Old Testament (Israel) being continually being judged by Him for breaking covenant with Him did not stop the Apostles from converting or make Jews leave their faith.
Beyond that, they were not even the same people. The ancient Egyptians were not Arabs. Modern Egyptians are the same ethicity as Saudi Arabians, most Iraqis, Kuwaitis, Palestinians, and all other Arab countries. Plus, those ancient Egyptians were pagans. Other than minimal cultural and obvious geographic ties, I don’t think they would any more offended (I would hope) than a Northerner would be offended at sharing the the name “American” with people from SC just because SC used to be a slave state.