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Can anyone steelman a reason for this rename?

I can't. It appears to be just "look fierce", or "make it so the public won't complain when we invade somebody". As if the problem with invading, say, Canada was ever that it was called "Department of Defense".

It diverts the attention of the public from other notable topics.
Because Department of pillage and plunder will be too obvious.
Will subdomains be added as conflicts occur?

iran.war.gov

venezuela.war.gov

drugs.war.gov

nato.war.gov

All that's left now is to rename the Nobel peace prize:

The Nobel war prize.

Up next: rebranding Basic Training to "Alpha Male Bootcamp of Virility", brought to you by UFC and Bluechew.
Also Cheetos, Mountain Dew and NordVPN, I'd hope.
That's just a marketing name this administration is using.

The POTUS doesn't have the authority to rename the Dept. of Defense, as it was created by the Congress and would require both the House and the Senate to rename it.

I thought this was a joke. Until I started reading the other comments. I still think it's a joke.
At least it is honest. If it were named the US Department of Peace, it would be very like 1984. ;)