From being on the other end of this - I’d say use it, but maybe mention it first!
Our good friends (who we see a lot) named their DD same as ours. Was a bit surprised when sent out birth announcement that she hadn’t mentioned it beforehand but of course understood was always their choice for a name and no reason not to use it. You’ll find that you don’t even think of their “insert name” when you have your “insert name” and won’t be an issue. But so is not a surprise I’d have a chat with them pre birth/ name announcement