I feel like calling it AutoPilot is already risking liability,

From an aviation point of view, Autopilot is pretty accurate to the original aviation reference. The original aviation autopilot released in 1912 for aircraft would simply hold an aircraft at specified heading and altitude without human input where it would operate the aircraft's control surfaces to keep it on its directed path. However, if you were at an altitude that would let you fly into a mountain, autopilot would do exactly that. So the current Tesla Autopilot is pretty close to that level of functionality with the added feature of maintaining a set speed too. Note, modern aviation autopilot is much more functional in that it can even land and takeoff airplanes for specific models

Full Self Driving is just audacious. There’s a reason other companies with similar technology have gone with things like driving assistance. This has probably had lawyers at Tesla sweating bullets for years.

I agree. I think Musk always intended FSD to live up to the name, and perhaps named it that aspirationally, which is all well and good, but most consumers don't share that mindset and if you call it that right now, they assume it has that functionality when they buy it today which it doesn't. I agree with you that it was a legal liability waiting to happen.