I've had this problem and it's because I use Outlook to sync my contacts. Under contacts, go to "Groups" in the left hand corner and make sure that "Contacts" is the only thing checked under Outlook or whatever service you use.
I have registered the issue on Microsoft Forum but they are completely clueless. Problem is somehow Outlook is now syncing PersonMetadata group too on iphone. I have provided all kind of screenshots and tried to explain the issue to them but no results so far.
Now they are blaming it on Apple saying it is the issue with iphone. Could be true as it doesn't show this contact group either on outlook web or if I sync my account on desktop outlook
Hey everyone, here is what I found to remove all of the "No Name Contact" form my IPhone.
In contacts go to the top left of the screen Groups, in Groups and uncheck "All Outlook", then check each individual list separately below All Outlook, and most important, do not check the list named "Personmetadata." I don't know why it is blowing up our phones with the no name contacts, maybe someone else will. But that did it for me.