Using the Shortcuts app to rename seems like an approach that’s definitely handy for some, but I agree with some of the previous sentiments—it’s a bit overkill. A simpler route, if all you’re looking for is a tad of organization without much fuss, would be to use the built-in folder option more strategically.
To add to what’s been said, you could use emoji in folder names for quick visual identification, which could help avoid the confusion altogether. For instance, let’s say you wrongly named a finance app, you could create a folder called 
Finance. The emoji helps quickly distinguish between folders without much thought. It’s not a perfect solution, but it adds a layer of organization and visual cues which might help.
Or why not take a step further and utilize app-less home screens? With iOS 14 and beyond, having widgets and app library means you don’t need to see every app icon crammed on your home screens. Just make sure to add the most relevant widgets and swipe to access everything else.
For the more cautious advisers, given the somewhat tedious nature of custom shortcuts and the re-installation method, just stick to grouping apps into maximally descriptive folders. Stick those you access most often on the dock or the first screen. Super intuitive and literally no extra effort beyond the initial move.
Additionally, remember that some productivity apps like Launch Center Pro offer more advanced customization if you’re willing to explore third-party options. It has some extra learning curve but allows for a ton more flexibility in managing your app names and icons than standard iOS features.
Alternatively, I know this sounds like “giving up,” but sometimes embracing the imperfection is less stressful. If no method truly ticks all boxes without adding headache, you can always just renaming them in your mental map and move on. Adapt and improvise!
TL;DR: Shortcuts work, but folders with emojis can simplify your life. No need for overcomplication. Embrace iOS widgets and home screen minimalism.