Yes, it doesn't fit either definition, so it shouldn't be called either.
The term 'free software' is hard to keep 'pure', because it has an obvious meaning for people who know nothing about software licensing.
But IMO, the terms 'libre software' and 'open source' should not be diluted. It doesn't serve any purpose to mis-use those terms, except confusing everyone.
Yes, it doesn't fit either definition, so it shouldn't be called either.
The term 'free software' is hard to keep 'pure', because it has an obvious meaning for people who know nothing about software licensing.
But IMO, the terms 'libre software' and 'open source' should not be diluted. It doesn't serve any purpose to mis-use those terms, except confusing everyone.