Earlier quoted context omitted.
VW actively detected if the car was on a treadmill testing setup and electronically changed the engine parameters to make it run cleaner. The water heater was designed with the test in mind but functions the same regardless. VW was clearly cheating whereas the water heater is taking advantage of known deficiencies in the test (is that cheating?).
I'm not sure that's an accurate description of VW's cheat. VW knew the parameters of the test (stationary car, no steering input, prescribed throttle inputs, etc). And they configured the car to pass the test. Water-heater engineer knew the parameters of the test (number and location of probes). And he configure the water-heater to pass the test. Same-same. In both cases, an engineering team willfully committed fraud…
The water heater runs the same regardless of whether it's being tested or is running normally in someone's home. Really, this test "cheat" exposed that the test itself was not measuring what it thought it was measuring; and hell, a manufacturer could accidentally cheat with their design.
The car would run differently if it detected it was in a test situation. In the real world, with a real driver, it would run in a way that would give different test results (if you were in a position to run the test while it's being driven).