D&D Character Name Sparks Religious Conflict Among Friends

I regularly play Dungeons & Dragons with a group of five, counting myself. There is the Dungeon Master and four players. I am friends with two other people outside D&D. With the other two, I have a friendly relationship that is limited to playing D&D. We've been playing for most of a year and have always gotten along.

I am Christian, and while my religion is very important to me, I do my best to be tolerant of other people and not to shove my religion down someone else's throat. I don't mention my religion to other people unless it comes up or they ask me. I can take jokes about my religion and personal beliefs, and do not consider myself uptight about it. I know that some Christians are very sensitive to parodies and the like, I either laugh or roll my eyes and move on. For example, while I avoid taking the Lord's name in vain, I don't really care if someone else does - it's their belief and choice.

Our group finished a short campaign and decided to start a new one, complete with new characters. We were all having fun making our characters, rolling, etc., until one of the players (we'll call him Ted) decided to name his character after the true, personal name of the Lord. If you don't know what that is, look up "The Tetragrammaton" or "HaShem" and you'll find out. I can't say it or type it here.

When I saw the name of Ted's character, I asked why he named it that, and he asked if I knew the true name of the Lord. I said I did, and said that the name offended me and asked him to change it. He laughed and said I was being too sensitive and that it was just a D&D character. I said that naming a character that goes against my religion and it was offensive to me, and I again asked him to change the name of the character.

The others got involved and after a few minutes of discussion, the others sided with Ted and told me to lighten up about it. One of them said that they didn't really care about Ted's character's name or my religion, but they wanted to get on with playing and that I needed to stop delaying the game. About a half hour later, we started playing, and for the rest of the night, I referred to Ted's character as "Ted's character," including when I was roleplaying and talking as my character. When I did that, the others rolled their eyes and the DM told me that this was stupid and shouldn't get in the way of roleplaying.

That was last week. Everyone else still thinks I'm in the wrong about this and making too big a deal of the whole thing. I don't want to cause trouble, but not only is it offensive to me for Ted to name his character that, my religion prohibits me from typing or saying the name of his character. AITA? Please help me figure out what to do. Other than this one incident, I've always thought Ted was a nice person, and we've gotten along fine.

If this had happened on a reality show, I wonder how viewers would react. Would they see my side of the story and understand my position, or would they think I'm overreacting like my friends do? Reality shows often highlight the drama, and I can't help but think this situation would be blown out of proportion, with people taking sides and debating the sensitivity of religious beliefs versus freedom in character creation.

Am I overreacting about my friend's D&D character name?