1. in a literal manner or sense; exactly.
2. used for emphasis or to express strong feeling while not being literally true.
Words are literally defined by how they are actually used by humans over time. If I hold up a sign saying "Free Donuts", no one is going to think I mean that pastries should be liberated. To unnecessarily cling to the word "free" when it has a more obvious secondary meaning is to tilt at windmills; there is no shortage of synonyms.
The two meanings are quite common in the english language, it's not a pedantic invention of the FOSS community to make this distinction.