This is an incredibly common misuse of the term e2ee. I think at this point we need a new word because you have a coin flip's chance of actually getting what you think when a company describes their product this way.
It's not incredibly common, there's sure a lot of companies that try to misuse it, but the average person (even non technical) still interprets it in the correct way
Any new term you come up with, will end up being misused by marketers.