Username displayed in Drupal admin not correct

I don’t know Drupal so I don’t know from which JWT claim (attribute) it takes the username value from. I think it also depends which Drupal OAuth/OIDC plugin you’re using.
My assumption is that it’s taking it from the name attribute/claim, while the username you user in the signup is in the username claim/attribute.

It’s very similar to the question here:

You should use a Rule (as shown in the linked threads, but slightly adjusted) to put the username value as the user name.

Untested, but should be like this:

function (user, context, callback) {

  if (user.name !== user.username) {
    var ManagementClient = require('auth0@2.9.1').ManagementClient;
    var management = new ManagementClient({
      token: auth0.accessToken,
      domain: auth0.domain
    });

    var params = { id: user.user_id };
    var data = { nickname : user.username };

    management.users.update(params, data, function (err, users) {
      if (err) {
        //handle err
      }
      console.log(user);
      callback(null, user, context);
    });
  }

  callback(null, user, context);
}