A lossy encyclopaedia should be missing information and be obvious about it, not making it up without your knowledge and changing the answer every time . When you have a lossy piece of media, such as a compressed sound or image file, you can always see the resemblance to the original and note the degradation as it happens. You never have a clear JPEG of a lamp, compress it, and get a clear image of the Milky Way, the…
An encyclopaedia also can't win a gold medals at the IMO and IOI. So yeah, they're not the same thing, even though the analogy is pretty good.
My point is that I find the chosen term inadequate. The author made it up from combining two existing words, where one of them is a poor fit for what they’re aiming to convey.