I don't understand your problem. Did you expect your C++ program to get uninterrupted access to the computer? What progression do you think isn't happening there?
I think you are misinterpreting that. That phrase unambiguously says the loop is preserved on the final binary.
I expect an infinite loop to be compiled into, for instance, a jump instruction jumping to itself. The OS, if there is any, is welcome to interrupt and context switch. I don't expect code that has no function calls at all to have a system call inserted into it.