A mention of no free lunch theorem should come with a disclaimer that the theorem is not relevant in practice. An assumption that your data originates from the real world, is sufficient that the no free lunch theorem is not a hindrance.
This book doesn't discuss this at all. Maybe mention that "all distributions" means a generalization to higher dimensional spaces of discontinuous functions (including the tiny subset of continuous functions) of something similar to all possible bit sequences generated by tossing a coin. So basically if you data is generated from an even random distribution of "all possibilities", you cannot learn to predict the outcome of the next coin tosses, or similar.