Of course it is. If I tell someone to allow list a group of people for an event, that requires further explanation. It’s not self explanatory because it’s non-standard.

> just like "component" or "extension"

If you use them the way they are commonly used, yes. If you repurpose them into a neologism, no. (Most non-acronym jargon involves repurposing common words for a specific context. Glass cockpit. Repo. Server.)