Dean had 4 of his UNC players on the 1976 team (Ford, Davis, Kupchak and LaGarde). Dean also selected his Carolina Asst Coach Bill Guthridge as an asst on the USA team. Back then, of course, only collegians played so those guys were current UNC players. I have no memory of eyebrows being raised by the selections, though it would be hard to argue with Ford and Kupchak for sure. Most everyone back then was focused on winning the gold after the controversial loss 4 years earlier. The USA Men's team won the Gold Medal in 1976.
Each of the 6 UConn players on the current team have gone on to establish themselves professionally (WNBA and Europe).
EDIT: Upon further research, there indeed was controversy over the selection of 4 Carolina players on the Men's National Team. Boy does this sound familiar:
"North Carolina’s Dean Smith, who was 45 years old in 1976, was selected to fill that role by a committee that included Iba, Red Auerbach, Pete Newell, Wayne Embree and Dave Gavitt. The Tar Heel coach picked his good friend John Thompson and his right-hand man at UNC, Bill Guthridge, as his assistants.
Picking the 12-man roster for the 1976 U.S. Olympic team was far more controversial. When the team was announced after tryouts on the N.C. State campus in Raleigh, it included seven ACC players, including four from Smith’s own UNC team.
“I didn’t select the players; the selection committee did,” Smith later wrote in his autobiography. “I had a single vote. I was allowed to advise the committee on the type of players I was looking for, but that was no guarantee that I would get the players I wanted. In fact, I lost several arguments.”
Nevertheless, Smith became the target of critics who claimed that he stacked the team with his own players. He was blasted for cutting Marquette big man Bo Ellis, who actually quit during the second lap of Smith’s required mile run, while keeping his own Tommy LaGarde, a big man who had played second fiddle to UNC’s Mitch Kupchak during the 1975 season.