Gen Z uncomfortable with names being used?

I’m a millennial. My daughter is Gen Z. I went into her work with yesterday and complimented a coworkers name from the name tag then said, “thanks, name!” As I left.

Daughter told me that she and the coworker were just talking about how they don’t like when customers use their names. Turns out, it was me that the coworker had brought up when they started the conversation.

When I was growing up, we were encouraged to use others names. It’s one of the steps in the book, “how to win friends and influence people.” I had a professor who thought the world would be a much better place if everyone wore name tags as knowing someone’s name humanizes them.

Is this outdated? Am I supposed to ignore name tags?