I know a Meriel (in her late 60s) and she ALWAYS finds people have trouble with her name. She can't be introduced anywhere without people commenting, or "correcting it" to Muriel.
Nor, tbh would I inflict upon any chyild / person the hassles of being called 'Merry" for the rest of their lives. Even without the 'merry = had too much to drink' connotation, I just wouldn't want people commenting on you supposedly being merry (as in happy , jolly) all through life.
Yes my dd is very jolly and it means joyfull and lighthearted as well
My dd does get called merry but mainly merryn or merrymouse! Its a really lovely name, unusual but not 'out there' iykwim. I certainly dont feel like we have 'inflicted' her with her name. If she doesnt want her name to be shortened to merry i am sure she will tell them, she could alwars shorten it to 'ryn' as well if she wants to.
My DSis used get a lot of jokes around Christmas. She got around it by spelling it Meri, sounds the same but people aren't tempted to make the same joke for some reason. She's also perfected the raised eyebrow to go with 'no, not as in Christmas unless you can't spell'.
So Meriel, beautiful, but consider not using Merry.