Is there a term for a euphemistic term being used literally?

Solution 1:

Perhaps literalism? Although it's perhaps most frequently used in religious contexts (e.g., interpretation of sacred texts), it seems to apply here:

The disposition or tendency to accept a text, statement, etc., literally; the result of this, the interpretation of words in their literal sense. Occas. also: an instance of this.

or

Literal translation; this as a principle; (also) a peculiarity of expression due to this.

(both from the OED).

I think the second use applies particularly in this case: words that might typically register as euphemisms but are intended literally could be considered a "peculiarity of expression."