Yes. If I'd wanted him to be called Jake I'd have named him Jake.
I'd correct anyone who did it. Every. Single. Time.
If they didn't take note that they were being corrected I'd be fast to tell them how rude they were being.
If they carried on I'd be telling my DC to ignore them until they used the correct name.
I dislike nicknames intensely. Call your own child what the hell you like - but call mine his name.