The issue is more about reusing memory that has been allocated when you "convert" (in Rust term: into_iter()) a Vec to another Vec. More surprisingly, the reuse still happens even when the new Vec has a different type than the original Vec's type. You should read the whole post—it's more interesting than I (and you) thought.
In the Haskell world, "space leak" is used to refer to a lazy computation that overallocates because of laziness (classic example being the difference between foldl and foldr or maybe that's foldl' and foldr'--I forget some details/cannot be bothered to think about folds right now).
I've personally stolen the terminology for a computation that temporarily holds on to a bunch of unneeded memory.
Whether you call that a leak or not, Rust is known for its predictability. Allocating 200x the memory which a programmer would expect if he doesn't know the implementation details is bad.
Coming from my java days, they called this a memory leak there too.
It’s definitely a more inappropriate term in rust, where memory leak has a definite meaning already.