Yeah, the name is pretty generic, but that's intentional as it doesn't seem to be for branding. In the specific case they refer to the new remoting application that can be loaded on the desktop or run from a web browser: https://client.wvd.microsoft.com/arm/webclient/index.html But the umbrella term Windows App is being used in other contexts.
It looks like they are trying to unite or unify their applications software initiatives. People have been running Windows on different OS's for years. The desktop has had around 70% of the market, and Microsoft Office/Microsoft 365 tools are well known and standard issue for many organizations.
As a developer I use a variety of platforms, tools, and OS's. Most of my work for the past 20 years has been web based, -- no phone apps -- but I have been recently challenged to provide Windows applications in the way of system services, shell integration, and end user experiences.
Most people have heard of .NET, but may not be aware that it is now fully functional on Linux and OS X. The .NET libraries are a middle tier or backend product, although there are front end options. The dizzying array of updates the past few years have led to a variety of migration headaches (migraine pun intended).
The front end or UI libraries have also been undergoing substantial changes -- mostly ignored as the web browser and the JavaScript libraries currently get much of the UI attention. The desktop libraries that have been around for many, many years are still in use, the Windows Phone has disappeared, game and game console use is expanding.
The Windows App SDK seems to be the plan to pull all of this together to simplify both development and the release process. It's also open source. For example, the WinUi includes .NET MAUI a platform for building Windows, macOS, iOS, and Android. This works, but, like all "modern" programming you need to wrangle the package and library updates and dependencies to get it to work. Sample code from a couple of years ago may not compile and you may need to ignore some warnings and even IntelliSense prompts -- enough to trip up any intelligence, artificial or otherwise.
Apparently unifying all of this -- for now -- is Windows App. You can create Windows applications and package them as .MSIX deployments and distribute them through the Microsoft Store. I guess that qualifies as a "Windows App."
So, the term is fully "over" loaded. It means whatever Microsoft wants it to mean and no amount of coffee will ever change that.