One lame politically correct debate I'm beyond over is the good old "don't say American, American means from the American continent, not from the US..."
Well.
1. "American" is the official appellation in the English language for citizens of the US. Our personal tastes don't apply here.
2. Polysemy and context are both a thing and are not optional.
3. I have literally never heard anyone saying "American" meaning "someone from the American continent." Have you?