Earlier quoted context omitted.
The strict meaning of "Redistributions" in that clause means that Intel would have to be distributing the OS itself as a product in binary form. Deploying it in an embedded system, and selling that embedded system, particularly in a form where the user does not have access to the OS as a product, does not meet that definition. Tanenbaum himself concedes this point in this letter.
This is quite debatable, not something I'd bet a court case on. One of my libraries with BSD 3-clause license was used in a U.S. government project. It did require particular hardware and couldn't really be deployed by any random user but they honored the mention clause without any prodding on my part. My Bosch kitchen appliances came with a whole bunch of software licenses for embedded subsystems, even GPL ones. So…
I mean, they could also just assume that shipping three sheets of paper with each washer is just cheaper than finding out.