I'm asking cuz NYU now allows those people to advertise an online masters as a regular one, and it bothers me tbh.
"advertise an online masters as a regular one" --> This makes no sense to me.
A friend of mine just got their masters of computer science from the online program at Georgia Tech and the diploma does not make a distinction between conventional on-site vs off-site.
If NYU is anything like Georgia Tech, the diploma is identical regardless of whether the student took the courses online.
Therefore, there is no "advertisement" that takes place. It is a regular master's diploma conferred by the academic institution. If you have problem with it, take it up with the registrar's office.
If you’re worried about the job competition impact, I would suggest focusing on your in-person/on-site achievements when building your resume.