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If I had a gp for every time a Monarch had the same name as a foreign nation, I'd have 1 gp, but it's still weird that the same word was used. Is there any connection?
I would guess that the Nation in Thassilon is the origin of the name, though it's certainly possible the Elven family is far older...
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(Xin-)Edasseril was an ancient Thassilonian nation. The first runelord of Envy named the nation after loveliest elf within the Mierani forest. So they have the same source - though it is possible this was an after-the-fact justification for why the Thassilonian nation has an elven name. I believe the Thassilonian city probably came first in publishing order, with Rise of the Runelords. But Telandia Edasseril was named shortly thereafter in Pathfinder Campaign Setting, it seems.