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I think it might cause some confusion IRL. It would almost certainly never be spelled correctly, and the pronunciation might cause some head-scratching (I myself for some reason always want to say "CLAY-oh" when I see Kleio). Kleo is much more straightforward but I must admit it looks a tad flaky (on par with Khloe).

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However I would fully endorse Kleio over Khlëo or Cleigho or god knows whatever else people could come up with!