When opening a terminal, I noticed that the laptop's name displayed in front of the username changed from something like "myname's_MacBookPro" to "huawei_p_smart-XXX". Why did this change happen, and should I worry about this? I do not own a Huawei, nor did I change any of my laptop's settings myself. I'm running iTerm on MacOS Catalina v10.15.7.
No. Your router tells your mac how to name itself and the Mac will take the name assigned to the router. Then you might decide to process those names or change terminal or decide to change your router setup.
This is common that many DHCP servers don’t ask Mac what their name is or don’t record it uniformly. Apple OS provides many “names” for your Mac which complicates things as well. What happened is your Mac asked the router for an address and name and it assigned the old name from an old device that previously used the address your router assigned.
You would need to patch the router or log in to the router and follow the vendor guide to assign a Mac name to your MAC address for the name to be one that makes sense, I believe.