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Both, I assume. "Git" was already slang for "stupid person," so this is a clever name.

I always assumed git was a sort of slang for get. So you "git the code" or use git to get code.

The pun is there for sure, but "git" is British slang for an unpleasant or annoying person. I was introduced to it by The Beatles: "and curse Sir Walter Raleigh, he was such a stupid git".

I believe it was Linus himself who quipped (paraphrasing) that he is so arrogant he named two software projects after himself: Linux, and git.

My most recent experience is hearing it in Reservation Dogs: https://en.wiktionary.org/wiki/aho#Navajo

I bet it's both. Extremely clever wordplay!