That's why they're fun. I always got the impression they're making fun of the usual management euphemisms. No one is under any illusion about what an "energetic engine failure" or "rapid unscheduled disassembly" is.
"Engine-rich exhaust" is another one that gets a chuckle.
For those wondering, it refers to when a rocket engine is literally burning itself into oblivion—so the exhaust plume is compromised less of fuel particles and more of, well... engine :)
I mean, it makes sense. Rocket engines are machines for controlling the release of enormous amounts of stored energy. So, many of the failure modes can be broadly categorized as either "not enough energy" or "too much energy in the wrong place".