When referring to someone other than the writer/speaker, some see them as problematic because they can be othering/dehumanizing, or they can suggest a (potentially incorrect and offensive to the subject) priority of the particular axis of identity.
Where we don't have a subject pronoun to which the adjective can be attributed, we would usually supply "person" or another noun referring to a kind of person ("A Japanese person told me...", "Any Chinese person would readily recognize the meaning of hundreds of kanji based on the influence of hanzi", "My friend married a Japanese woman", "My mother goes to a Chinese acupuncturist").
Maltese, Lebanese, Chinese, Japanese, Polish, English, French - AFAICT only used as adjectives.
Canadian, American, Mexican, German, Russian, Nigerian - adjective or noun.
I'm not even trying to touch on appropriateness, just the general rules on how words are used/spelled. Something about 'an' makes it sound natural to use as a noun.
Which itself is weird, because most other countries we just suffixed - like Englishman, Chinaman(also now considered derogatory, I think), Frenchman, Irishman, etc. But I cannot recall ever hearing 'Japanman' or anything similar.
In any event - I wouldn't take this situation you're in as any slight or bias against any people - it's strictly to do with the English language and ese/ish demonyms.
If my guess about that is right, then you could compare it (pre-WW2 only!) to "Aussie" and "Kiwi" (for Australians and New Zealanders), which nobody would say is "the" name for these groups, but which is also not an insult. Although this is complicated because these are, I think, also autonyms for these fellow English-speakers. Maybe another example is "frogs" for the French, which is mildly disparaging but usually not a horrible insult, at least in contexts that are otherwise respects.
https://en.wikipedia.org/wiki/Japanese_holdout
"Jungle Jap" would be extremely offensive if used by a non-Japanese person to describe a Japanese person today. Although I wasn't born yet, I think that was almost certainly already true in the 1970s.
There are a lot of cases in which people use disparaging group terms and slurs for themselves either as a joke or as a political statement (which is sometimes called "reclaiming" when done consciously and politically). For example, "nerd" is often disparaging but many of my fellow nerds would regularly call each other that in school, and the web comic SMBC routinely refers to its readers as "nerds" (and I don't think the term would be considered disparaging at all when used within the context of a technology-oriented site or forum). I don't think this is a very clever idea for commercial branding, since other people who are aware of the disparaging use might find the brand awkward or uncomfortable!
It doesn't sound abnormal to call someone a Korean, or most of the 'an's. But it does to call someone a Chinese/Japanese, as it's only used in the adjective form. We used to have noun forms, but they were deemed offensive long ago - so I'm not sure what the correct way is today.