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My friend's grandparents weren't the best spellers, and named her father Phillipus. When he had a son, he named the boy Phillipus in spite of knowing the actual etymology. Family name ... my friend has a higher degree in Classics, and she feels embarrassed for both of them!
I think there isn’t a universally classic spelling of Margo, and this spelling to me certainly is not one to feel ashamed of. I think the name, in any spelling, isn’t beautiful enough to go on my list, but it reminds me of a beloved aunt.