Following the "user name formats" documentation, configuring the user name format to use {nickname|firstname} should change the display name across the platform for our users, pulling from the preferred name field if there is a preferred name, then using first name if there is not a preferred name. While it does behind the password in most cases, it does not change the fact that the "firstname" is always displayed on the front-end public-facing site. This should be fixed as it has an impact on how the students prefer to present themselves and how they are known by their community.
I just discovered that this can be done within the roster section of each webpage. Go to School Website, Website Management, Edit Website, click View Site, navigate to the team page, click Edit Content in the floating toolbar at bottom right, locate Team Roster and click the settings icon, Athlete Name Display settings including {Preferred else First name} options. It would be great if it automatically respected the User Name Formats setting, but this gets you there for each roster.