>A recall is issued when a manufacturer or NHTSA determines that a vehicle, equipment, car seat, or tire creates an unreasonable safety risk or fails to meet minimum safety standards. Manufacturers are required to fix the problem by repairing it, replacing it, offering a refund, or in rare cases repurchasing the vehicle.
So basically, regardless of whether the fix is a software or hardware update, any issue a car has that "creates an unreasonable safety risk or fails to meet minimum safety standards" falls underneath the "recall" banner. I can see the benefit here; a recall generally gets a certain level of publicity that a "software update" might otherwise not. It might not be a bad idea for people crossing at stop signs to think, "Hmm, Tesla approaching, let's exercise just a bit more caution", until this is resolved.
[1]https://www.nhtsa.gov/staticfiles/rulemaking/pdf/Recalls-FAQ...
I was perplexed by the wording as well. Apparently software updates can be labeled recalls now? Did someone inform Microsoft, maybe this would help Windows 11 adoption.