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However, doesn't this "IsFamous" label break down when multiple famous people share a name. No obvious example spring to mind, but it surely must happen...

Seems like it would be more useful to have some kind of more general labelling system, where you could be 'verified' as (say) a famous actor, and/or musician, or whatever. Then people could distinguish not only the famous Matt Smith from the unfamous, but also the painter Matt Smith, and so on.

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The UK actor's union Equity effectively acts as a name registrar to avoid this: https://www.actorsequity.org/join/WhyJoin/name-protection/

That's why https://en.wikipedia.org/wiki/David_Walliams spells his name with an A rather than the more normal I.

I mean, Michael B. Jordan is a good example of why you don't have a good example. Even if you share the name, you have to differentiate it somehow to be marketable.

As a sibling of yours points out, it's not just for marketing: the US actors' union does not allow active (or potentially inactive) members to share a name.

Michael B. Jordan has the B because Michael Jordan has a SAG card from his movie work.

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