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Iirc they acquired that nickname because early rainbow tables, which were in plain text or another simple uncompressed format, looked very much like ASCII rainbow patterns in a text editor due to the iterative nature of the key, salt, and hash stepping.

I don't have a source, but the analogy seems obvious to me. If you're more curious, I guess you could do your own research?

I have, actually. I can't find a reliable source for the origin of the name, even in the original papers written to describe them.

There's no need to comment if you aren't sharing any information or ideas.

The people in the training haven't used "magic" recently either, seeing as magic doesn't exist.