As per FIDE rule 3.10.3 "A position is illegal when it cannot have been reached by any series of legal moves". The position isn't legal per FIDE rules.
Beyond there being too many queens… black could not possibly have made the last move. For white to have any moves right now, the last move must have been black moving the king to H8. But G8, G7, H7 are all occupied, so where could the King have moved from?
I don't think I’ve ever heard it used like that, and in trying to find any example other than the page we’re commenting on, I’ve only found counterexamples.
Whether it’s wikipedia’s 'Glossary of Chess Problems' or OzProblems or 'Sam Loyd and his chess problems' from 1913, they’re all using 'legal' as synonymous with 'reachable'.
Legal: doesn’t break the rules of chess. For example: no pawns on the eighth rank or in check when it’s not their turn.
Reachable: there is a series of moves that lead to this position from the standard starting position.