How sound is the circulating story about Imam Abu al-Hasan al-Shadhili that he asked his Lord: "Why did You name me al-Shadhili, when I am not al-Shadhili?" and Allah answered him? And is this permissible according to Sharia?

Abu al-Hasan al-Shadhili was Ali ibn Abdullah ibn Abd al-Jabbar, the ascetic, who passed away in the year 656 AH and was buried in the desert of Aydhab. He resided in Alexandria and was the شيخ (shaykh) of the Shadhiliyya order. Al-Dhahabi attributed him in Tarikh al-Islam and mentioned that he had poetry and prose containing ambiguities (mutashabihat).

The well-known biographical dictionaries do not contain the story of how he was named al-Shadhili. However, some later scholars mention a narration that Allah named him "al-Shadh dhali" (the singular one for Me), meaning unique in his service and love [for God].

But the authoritative biographical dictionaries, including Lata'if al-Minan by Ibn Ata Allah al-Sakandari, state that he resided in the town of Shadhila near Tunis, and his spiritual emergence began there, so he was attributed to it.

For details on al-Shadhili's creed and knowledge, one can refer to the book Dirasat fi al-Tasawwuf by Sheikh Ihsan Elahi Zaheer. Also, Shaykh al-Islam Ibn Taymiyyah has a printed treatise in refutation of al-Shadhili.