The Punks took their name from punks.

Punk Rock is rock for punks, and it became a term of pride in shared identity, the way redneck is to some people.

There were still some who hold on to the old ways and used it to describe contemptible and aggressive individuals. That’s what NWA is doing with that lyric. It’s especially stinging as the song was recorded in 1987 where that is the language the authorities would have used to describe young Black people like the members of NWA when they were literally just living their lives.

Both are extremely based and had similar vibes: the Punks claiming it for themselves and NWA turning the language of the oppressor back on them.