My mobs names have suddenly changed. Bears are named mudcrabs, rabbis, dragons, etc. When searched they are carrying the right items. How can I get their labels/names corrected or could it be a corrupt mod causing this?

You found a rabbi in the wild?

I think you have a corrupted mod or something similar.

Check your mod list first of all.

A wild rabbi appears.

I saw Daedra with name as "Rabbit". Since then, I know that Wabbajack isn't a weapon of the best choice against critters.

As for OP, probably broken mod or something. Just make a fast research on mods you use, and look for comments, you will probably find out which one is causing this.