This is the actual device name, not just the network but that’s a good point. Tethering via the network manager GUI from a macbook works as expected with the network name same as device.
You got me curious so I checked arp -a which shows host name as a ?. Nmap also isn’t able to resolve the emoji name, neither is host, and I don’t think dns-sd either, though my mdns-fu is poor. I did test Terminal.app and I can echo an emoji so I’m guessing this is mostly a limitation of some of the ancient bsd utils that are packed with macos.