Basically, it's the wide-used creationist tactic of
semantic shifting, which is changing the meaning of terminology. Its more common use is to quote a scientific source using scientific terminology and then reinterpreting it to their audiences by using the non-scientific street meanings. IOW, they lie about what their sources are saying.
In this case, they present "vestigial" as meaning "having no function" whereas the more proper meaning is that it no longer has its original purpose.
Now, why do creationists use semantic shifting? Obviously, because the evidence does not support their position, they need to make it look like it does. Are they doing it on purpose? Again obviously, most creationists have no idea what they're talking about, so they're regurgitating such nonsense while not having a clue. Even some, if not most, of the originators of such claims are also acting out of ignorance, there are some originators who are lying on purpose.
How you to respond? Once you've learned enough to be able to carry on a discussion, then take their claims seriously and try to discuss them with the creationists presenting them. Especially try to get them to discuss the actual evidence. For example, Kent Hovind made a claim based on the rate at which the sun is losing mass while it "burns its fuel" (actually, though he would skirt that issue, the mass loss is due to the thermonuclear reaction in its core that converts hydrogen to helium and energy -- about 5 million tons lost per second) and extrapolating back 5 billion years to a sun so huge and massive that it would have sucked the earth in. So I did the math and found that the sun would have only been marginally more massive back then and would have only "sucked" the earth in by less than 100,000 miles. When I tried to discuss this claim with Hovind, he did everything he could to avoid it, even to the point of twice trying to pick a fight with me over my user name, DWise1.
Nothing makes a creationist more angry than taking their claims seriously and trying to conduct a serious discussion of those claims. While in cases such as Hovind's they know that their claim is a lie and they're trying to keep from having that lie exposed, in most cases I'm certain that most creationists are simply too ignorant of their own claims to be able to discuss them.