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Only the user Display Name was updated in Active Directory. However the incorrect old display name is not updated in SharePoint People Picker and still shows the old name. The "User's Security Identifier" (SID) of the user did not change.

You can see the old name still being shown in the People Picker and in the Site Collection User Information List (https://Environment/_catalogs/users/simple.aspx)

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To update the name in SharePoint People Picker and other lists, execute the following PowerShell Command:

$web = (Get-SPSite https://Environment).rootweb
$web | Set-SPUser -Identity "DOMAIN\username" -SyncFromAD

When you refresh the User Information List or search the user in the People Picker, you will see the updated name.

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