In my area, this type of waste is not accepted in the recycling. Just like you can put paper in recycle, but you can't put shredded paper. This would work pretty well in the compost pile though.
Recycling means making new cardboard or paper out of old material.
“Recycling is the process of converting waste materials into new materials and objects. https://en.wikipedia.org/wiki/Recycling
Old tires to footwear is recycling even if you can see the old tread pattern you don’t have a tire at this point it’s a new item, or as I suggested cardboard crap waste to fir on a piece of artwork. The difference is you’re modifying the underlying item for use as part of something new.
It can feel like a grey area. Upcycled is often used when much of the original item remains, but shredded cardboard isn’t really cardboard as it lacks some of its fundamental properties arising from the 3D structure.
This is so low on the long list of bad things in the world that it isn't worth the calories burned to type up a callout.
> I took out my comment calling it wish-cycling propaganda as a selling point, and decided to be less cynical.
Good call. I thought the comment as you wrote it was perfectly good & useful.