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I say it still works. The association is there. And historically it was the traditional nickname for Marguerite. For example, Marguerite de Valois, first wife of Henri IV lived in the late 16th century and early 17th and was actually nicknamed Margot by her relatives and inner circle. Even to this day, she is mostly known as ''Queen Margot'' in France.

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That beind said, it's true that a lot of people nowadays name their child simply ''Margot''. I guess it happens in all languages, when nicknames become stand-alone names over time.