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I've now been able to check the dictionaries in my office and can't find anything resembling Daegan except Deegan. One of the alternative spellings for the surname Deegan given in Hanks & Hodges' A Dictionary of Surnames is Deighan, which some people might look at and think was pronounced Daegan. That might be one possible explanation.

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But you still should ask the parents where they found it. :)