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This is a far more nuanced explanation of the term Daesh than most explanations you'll find:
https://www.freewordcentre.com/blog/2015/02/daesh-isis-media-alice-guthrie/tl,dr: It's Arabic word-play that they don't like. I'd rather call them that because they don't like it.
Why the preference for referring to them as Daesh?