what does intended for distribution with a refurbished pc mean?

Solution 1:

There are no limitations. When you install it, check if it's a genuine version (if it is not, you will find out with bunch of warnings after you install it). The refurbished authorisation program is legit by Microsoft, so as long as the OS you got is genuine, I wouldn't worry about it. See more info here: Click here

Why is it labled so and the purpose behind it? When a laptop/pc breaks down and it gets discarded, the OS on it would go to waste as the product key associated with that system is no longer being used. Refurbished authorised distributors reuse those keys, they are just as good as a fresh one from Microsoft or one that comes with a new OS. Just ensure your one is genuine: do this by installing it and checking for updates (Windows Update). If it's genuine, it should update, otherwise you will get warnings.