If it was as wide as the OP said then it means errors, panics, and especially Unsafe wouldn't exist. Even if we ignore unclean sources (say network errors/etc), this isn't a Proofed language where programs in it cannot possibly fail.
Besides, it likely is very possible to write programs that cannot fail in Rust. This usually means encoding state into the type system (enums included), but few go through that work. They know what corners they're cutting. Further proving that they know their program can fail.
Hell, Rust itself can fail. I struggle to imagine how this is perceived as some long-con from the Rust PR team to convince people Rust programs cannot be written with incorrect logic.
That's not how I've seen it used every that I have seen it used.
> At best it's ignorant of what that phrase means, in my view.
I think your opinion on what the phrase means is a minority opinion.