Yes that’s the original spelling & meaning. But using the spellings foobar, foo, bar, and sometimes baz, have been used for decades in programming as examples, temporary names, stand-ins etc. I just assumed that spelling it foo was meant to distance it from the curse word slightly while simultaneously making the pronunciation more clear (i.e. foo not fuh); foo just makes a good nonsense word.

not in code, the tradition has been two words actually, foo and bar

I played Dungeon, the much larger mainframe version of Zork in 1978. Between me and six other guys it took us nearly a year to finish the game.

At that time, there were no video terminals. There were no monitors (this is high school).

We played Dungeon and Adventure on 17” wide green bar paper terminals, usually a Digital Equipment Corporation DECWriter II or III.

There was no Internet. There was nowhere to go for hints. We simply had to figure everything out.

At that time, these were the first complex computer games. When the Imps created Infocom they made the top ten most popular games until video arrived in classrooms and homes.

There is a fairly active community of hobbyists that still make text games, though evolved away from the brutal puzzles to more balanced narrative and seamless puzzles.

Using Claude I even built my own platform: https://sharpee.net/.

There a thousands of free text games. Check out https://ifdb.org for more.