> if he said or wrote that at all

See “TUG LINES”, Issue 32 [1]

> it's likely related to what Kay understood by the term, or the implementation as a dynamically typed, originally interpreted language done at Xerox PARC

I think the comment was referring to what they were doing at Xerox PARC - yes.

There are more recent writings of him taking jabs at Californian universities for teaching Java to freshmen instead of what he was doing in Austin - teaching functional programming via Haskell. [2]

[1] Dijkstra, E.W. Quoted by Bob Crawford. TUG lines, Journal of the Turbo User Group, 32, Aug.–Sep. (1989)

[2] https://www.cs.utexas.edu/users/EWD/OtherDocs/To%20the%20Bud... (2001)