Usually “production” in those contexts means running on a cluster or supercomputer somewhere. That, or code being run on a machine not controlled by the developer by users who do not write code but just run a pre-existing program with different inputs. That’s how I (and colleagues) typically use the term ‘production’ in the academic/research environment that I work in. The issue with things like MATLAB in production is the lack of a license on the machine you want to run on - often people have it on their workstation, but if you get time at a supercomputing center or department cluster, odds are your local license doesn’t translate over to the system you want to run on.