Bruce Schneier always used the term 'snake oil' for such unfounded buzzwords and frequently did naming and shaming on his blog.

But military-grade is just a buzzword. Unlike something like MIL-SPEC there is no body that determines what is military grade. And even MIL-SPEC is not very specific, most of its standards have many components that don't apply unless the vendor specifically certifies for it.

But yeah most vendors that use such terminology demonstrate a very poor understanding of the technical principles and use their marketing buzzwords to make up for it.