"Conforming program" may be a largely useless term, but it's one of the two conformance levels for programs that the C standard defines. The other is "strictly conforming program", and it does not include any terminating C program, so it's also a largely useless term.
Now C compiler maintainers justify "optimizations" with the C standard, and indeed, a compiler that behaves like that is a "conforming implementation" (the only conformance level that the C standard defines for compilers). Is that a useful term?
Yes, we should be exploring the fringes of the C standard (in particular, "optimizations") less, because that is not useful territory; instead, we should orient ourselves by looking at the C programs that are out there.
But anyway, my thinking when I wrote that was: if somebody comes at you with the frequent stance of "your program is non-standard crap full of bugs", when it worked as intended with all previous versions of the compiler, you can shoot back at them with "it's a conforming program". Of course, if the other side is a language lawyer, that approach will not help, as you demonstrate, but if not, maybe you can get the other side to take a more productive stance.