Only you can weigh up if its worth the likely argument (and possible damage to the relationship) over a name! Personally I'd be pissed I felt I had to name my child something I hated. I would've insisted using Theodore only as a middle name. But then my OH agreed to this idea if we'd had a boy. I'm not sure to what extent I'd have refused if that were the situation. A name is for life so it is a big deal. Not sure why your OH is so hell bent on using the full name when you'd agreed to a nickname. Especially when it sounds like his dad wasn't a nice person. I think you're well within your right to insist on calling your son Ted 🤷‍♀️ but not sure it's worth losing your OH over it, if it came to that.
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You can change the child’s name on their birth certificate up to age 2. If you really don’t like it, better to change it now early on than be resentful years later. https://www.citizensadvice.org.uk/scotland/family/birth-certificates-and-changing-your-name-s/birth-certificates-s/#:~:text=Changing%20the%20child's%20name,be%20removed%20from%20the%20certificate.