The code is, if not outright lying, at least misdirecting.
Second, experience has taught me that code and comments often don’t agree. Too, if you have to comment that a loop really isn’t a loop then this is an indication that something is wrong.
Third, it isn’t a loop: while(false) never loops. That’s the point. Having to use a forward reference to understand the beginning of something is bad practice.
Fourth, this construct is almost always a sloppy way to prevent if-else creep. The code is invariably improved by a) not lying about the loop and b) refactoring.
But we should be cognizant that those features are still extremely close to a naked goto in terms of the ability to reason about the code - it's just a sprinkling of syntactic sugar on top. So if goto is unequivocally bad, then e.g. early returns are also bad for all the same reasons. Conversely, if those features are fine when used in moderation or in well-established patterns (like "if (error) return") - which I believe is the case - then so is a naked goto. It's the cognitive dissonance of people who use them heavily while insisting that goto is absolutely evil, no exceptions, that irks me.
Sounds like we are in agreement then.