When Egypt became “Misr” in Arabic Europeans didn't adopt the name because they already had one, and my guess is Egypt didn't really press the issue. read more
The Egyptians originally called their country Kemet. Arabs are relative newcomers in Egypt, as one can see from their modern name for the country Misr. The English name Egypt comes from Minoan Hakapityo - which is what the Minoans called the country (which they knew as an important trading partner). read more