Renaming iPod inconsistency

Can someone explain this:

I got an older ipod nano, 5G I think. I connected it to my Macbook Pro and tried to rename it, but I could not even select it in the left iTunes pane. In iTunes it showed as OLDNAME. I went into Finder and renamed it NEWNAME, but it still showed OLDNAME in iTunes. I then ejected and reconnected it, but it still shows NEWNAME in Finder and OLDNAME in iTunes.

I'm running the latest version of Mojave on this Mac. When I select the iPod in Finder and do a get info, it indicates the iPod is formatted MS DOS FAT32. Is it supposed to be formatted like that?

Advice on how to proceed.....???