What they're saying is that they'll replace your chip if it behaves differently from all the other chips of the same model, not if ALL the chips are broken by design.
"the Product will substantially conform to Intel’s publicly available specifications"
They're saying that it should work as specified for the most part. And apparently the CPUs do, since they've been in continuous use for many years.
Note that they also have this exception:
"… THIS LIMITED WARRANTY DOES NOT COVER: … that the Product will protect against all possible security threats, including intentional misconduct by third parties;"
Which is likely designed to handle issues just like this one.