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Probably more likely the name is a reference to Civil War Confederate General Basil Duke. Or perhaps the name merely is meant to invoke the idea of the Dukes as important, “noble” figures in Hazzard County, or at least more noble than the corrupt Boss Hogg. Or maybe a cigar is just a cigar in this case.
Good theories. Honestly, I don’t totally think it is in reference to the Klan dude, but it sure is an unfortunate coincidence