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I've never found a convincing explanation either! All the sources that link it to Lorelei fail to give an example of it which predates the early 19th-century date of the Lorelei story. And I can't think why anyone wanting to use the name of a story character would instead use a form of it which didn't appear in the story.

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For what it's worth, the closest I've ever come to a guaranteed sighting was of a South African woman born in about 1945-1950; her name was Lurlyn.