"Numbers Matching"
This is my opinion, and the generally accepted norm:
When people say "It's numbers matching" - what they mean is the engine (or other component, i.e the transmission) can be MATCHED to the vehicle it was originally used in. This match is done via the PARTIAL VIN stamp on the component. The partial VIN will match the vehicles VIN. If it does - it's "numbers matching", otherwise - it's not. done. end of story.
Some folks use these terms loosely, or will say "numbers correct" or something to that effect. But numbers correct is not numbers matching. Again, it either matches or it doesn't. If it doesn't match - is it correct?
Numbers matching is important when you're trying to decode a Z28 or Super Sport where the VIN won't identify the vehicle as such. You need to decode the engine and see if it matches the vehicle, and if the code signifies Z28 or SS equipment.
Lastly, in extreme cases, you'll want to verify the numbers stamped onto the component were the ones stamped into it originally and aren't restamped.
The point of this article is to help you figure out how to decode stuff.
Small Block Chevy Engine Block casting and code identification