Would you use the name of another kid in your older LO's play group?

We have had a group of baby friends since the babies were about two months old, about 8 of us who still get together somewhat often. DH and I really like a name, but one of the girls in our play group is named that. We see her maybe once a month on average. I don't see the mom getting too upset about it, she's pretty easy going. And it's not a super rare name or anything, but not that common (Hazel).

It still feels weird to me to use their name, and we are still thinking of alternatives, but it's currently our favorite, other than that. What would you do?

Also, names you like that are similar?