IFT 3 was a suborbital flight, so… either it did not reach orbital velocity, or the upper stage careened so wildly out of control that it borked it.
Its kind of confusing as in the live stream of it they keep saying the phrase orbital velocity, reached orbit, but also say it was intended to be a suborbital flight.
Also, the lower stage crashed into the ocean at around mach 2, so maybe that is what they are referring to? Looked like many of the engines did not relight, in addition to significant instability as it traversed back through the atmosphere.
Also also, the ‘re entry’ burn may be referring to attempting to relight the engines while in space? You are probably correct that they mean the landing burn / belly flop???
Edit 2: If they intend to do a suborbital flight, but also reach orbital velocity, this would entail a trajectory leading to a fairly steep descent path, which could need a … basically a pre reentry burn, to lessen velocity and/or change the descent path to something more shallow.
Its pretty hard to tell actual info about these Starship flights, partially because SpaceX outright lies during their live feeds, is tight lipped about other things, and many sources of coverage are often confused and/or simping for Musk.
One last thing: Does… Starship, the upper stage… even have monopropellant thrusters, or gyros, or anything for out of atmosphere orientation adjustments?
From the IFT3 vid it seemed like either no, or they malfunctioned.