1. I think in this case it could plausibly be a coincidence.
2. One possible pronunciation is not at all a problem for talking about a project because you can just use a different one. Especially if the innocuous pronunciation makes more sense, as I think it does.
3. "Rather A Pokemon Emulator?" is a problem because it's an acronym. If you want something that applies to this situation, try something like "Car: A Pokemon Emulator". Saying that 'carape' or 'CarAPE' is offensive is pretty ridiculous.