To me, that doesn't sound as "bad for you". Maybe if "not recommended" is taken out of context (and extrapolating that into "not recommended because masks don't work").
It's still not a lie, as far as I can tell.
N95 masks are strongly believed to help but do not buy them. Save them for health care workers. We do encourage you to wear bandanas, gaiters/buffs, homemade cloth masks, or other non-medical PPEs. They are of unknown efficacy but they can't hurt. But don't buy N95s.
Which a lot of people would have heard as: You really should be wearing N95 masks and others won't do you much if any good but we need to save them for the important people.
(At which point, a lot of people would have been F this and tried to buy N95 masks for their own protection.)