But using a UI element to switch between two states that only shows one of those, exchanges the option it shows at the same place and is normally used to indicate on/off states is a bad choice.

It would make semi sense if left was "white", right was "orange" and switching the toggle to each side chooses what it says on that side.

I think you could add some space on the left side of the toggle and maybe show the "Orange" label there, or at least just add the space so it looks separated from the "Now UI kit" brand label.