I don't feel like I know of it, now with respect to indigenous American peoples anyway. I can look out my window right now and see a very large I on the mountainside above me. It is for the Intermountain Indian School (see
https://en.wikipedia.org/wiki/List_of_hillside_letters_in_Utah and
https://en.wikipedia.org/wiki/Intermountain_Indian_School ). The school has been closed for almost 40 years but someone still maintains that I. Not sure who, I always assumed it was some of the graduates of the school. Anyway I don't know that the I has created any ill feelings, never heard that it has. Not that all of the people who went to the school had good experiences, I know many did not, but the Indian name is something else.
My touchstone for this is the N word, I grew up in the US south and heard the N word used freely, I used it. And at first I was resistant to stopping, but now I understand that it is insulting to most black people to hear it, from whites anyway. So out of respect I no longer use it, and don't like hearing others who do. I just don't have anything close to that understanding of how indigenous people, most of them anyway, feel about being called Indians. I know the name originated from Columbus' misunderstanding over 500 years ago, but I don't know that the word has been used as insulting or disrespectful. It is not when I use it.