For our D365 customer, the recommended approach is to set the date format for all users to DD-MMM-YYYY (e.g. 26-Feb-2020).
This is a common approach in international implementations, as to avoid any misunderstanding across the different countries. As you know:
1. In Europe the standard format is DD-MM-YYYY (25-02-2020);
2. In the US the standard format is MM-DD-YYYY (02-25-2020).
In the pharmaceutical industry a misunderstanding may be really dangerous, e.g. if the Expiration date of a batch is misinterpreted. This is also valid if a SSRS report is printed, e.g. a Certificate of Analysis to be provided to a customer located in a different country.
The only option that seems to be available to manipulate the date format is for each user to select a specific Date, time and number format in the User options form. However, the pre-defined formats do not cover the requirement above.
This was possible in earlier versions of Dynamics (AX2009 and AX2012), but the infrastructure is completely different in D365.

PS: The customer is currently on AX2009 and they use date format MMM-DD-YYYY (e.g. Feb-26-2020), therefore they are already used to seeing the month in letters.