Is there a problem with ISO3166 denoted information in general or is there a specific US issue here? I would think ISO code denoted tzdata was a public good in some sense.
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And for most of its life it’s been an explicit policy that timezones are named by continent and representative population center, not by country, to avoid entangling it in territorial disputes and improve naming stability for historical data. The US/* (and Canada/*, etc.) names are deprecated and have been since 1995 (?), but apparently people were still using them because the deprecation wasn’t really apparent unless one was especially into reading release notes.