I’ve never had a problem with the episode title for the original film, mainly because I knew that Lucas wanted to include it from the very start in 1977, but Fox wouldn’t let him. That didn’t change until it became a huge hit, and when audiences first saw the “Episode V” numeral on “The Empire Strikes Back”, they were confused. So Lucas re-released the original with its proper title in 1981, and its been called that ever since.
Not saying that’s wrong, but it seems like a convenient “George story” to blame Fox. Do you have a source for it that predates the change?
I call it just “Star Wars” personally, or if there is some need to differentiate the film from the wider cinematic universe, “1977 Star Wars.”