On the other hand, chicken nuggets made out of rice explains exactly what they were eating and what the food might have tasted like and how it might have been cooked. You didn't explain what's wrong with that beyond it sounding funny to you.

Quorn makes chik'n nuggets made of mycoprotein with similar nutrients to a chicken nugget, but with the added benefit of fiber and less saturated fat.

Including chicken nuggets in the name is useful for the exact purpose of helping the consumer scratch their itch for a food with something that approximates that food. Maybe they care about animal ethics, maybe they're allergic to chicken, maybe they want to reduce saturated fat despite eating something that tastes 95% like a chicken nugget.

Requiring them to label it "fried mushroom protein" doesn't help anyone and seems to be coming from an emotional/reactionary place rather than a place of helping consumers.