A family label can survive years after the behavior that earned it changes.

Reputations inside a family are set early and rarely audited. Someone was unreliable at nineteen, and at forty the jokes still run, long after the person changed. What makes it stick is that everyone has learned their lines, and the label saves the group the effort of noticing anything new. The person on the receiving end often stops arguing and gets quieter at gatherings.

You can retire one of these without a confrontation. Stop repeating the joke, and describe the person as they are now when they come up in conversation. If the label is yours, say plainly that it no longer fits, and let your behaviour do the rest.