No M&V you were nearly right :
When they first came out they were called "little white pointers that you put around your altimeter and ASI’s". Pilots got fed up with this and referred to them as "little white B******" as in "Where are we putting the B****** for this Take Off or Approach?
Eventually the name was shortened to Bugs as in "ere where’ve you set your bugs?" when you’re 10 kts. fast on the approach.
