Just to be super clear, this isn't my advice, it's just something I keep seeing on a lot of how to create character advice articles and videos and I wanted to see if it was a real thing these days or outdated but still parroted like that "said is dead" advice.
Yeah, this is sorta a sign of a beginner writer in my mind. They should be situation appropriate.
I think it's mostly directed at western audiences because most the people giving advice are English speaking and assuming you're writing for an English speaking audience. As I mentioned above, it's the Japanese equivalent would be giving everyone common Japanese names. I don't think it's supposed to be anything about immigrants or foreign names so much as if you've got a group of girls rather than calling them Duchess, Alison, Cassandra and Minerva use more common standard names like Sarah, Anne, Rachel and Mary.