Infotainment and navigation don't require "automotive grade" label. "Automotive grade" is a special label for things that meet additional stringent requirements to be able to be used in harsh environment of the car. You can run navigation on an Android phone and it will be perfectly happy without "automotive grade" label.

Go to any electronic parts manufacturer and you will find separate sets of parts, ones for normal use and then ones for "automotive", that have improved resiliency to temperature, vibration, etc.

For software, this tends to be used to describe components meeting special additional requirements with regards to stability. You wouldn't want your ABS controller to decide to break at most inopportune moment. There are special sets of standards for coding that kind of software (see MISRA) that are not required but highly suggested.

For software that has no influence on safety, the tag "automotive grade" would have no meaning.

Eh, automotive requirements are more than just for safety-critical pieces - reliability matters for non-safety functions too, and all automotive Linuxes I've seen had similar pieces build in that direction - which from my understanding AGL attempts to standardize.

Then there's things that are less critical than the hardware keeping the car on the road, but more important than the radio, and Linux is creeping in there too. Be it parts of the instrument cluster, or non-required warning systems, or visualizations of surrounding traffic, or ...

Just because the requirements placed on these components are not as strict than e.g. for engine controllers they still are additional requirements specific to the field, so I don't think the label is totally misused. Although I admit that the confusion it apparently causes every time it is mentioned points to it being a bad name nevertheless, and "automotive linux platform" would be appropriately buzzword-compliant too.