From the two definitions found in https://www.sqlite.org/serverless.html
classic serverless --> "embedded database" exists and is often used
neo-serverless --> I suspect that this is a marketing term used to attract cool people to new cloud offerings (like "jamstack" for services such as netlify). There is no good replacement here because the term was tied to this new kind of infrastructure really early. But anytime I hear someone repeat "of course serverless does not mean there is no server!" I die a little more.
Naming things is hard but at least we ought to try to come up with terms that are not blatantly misleading.