I don't understand your problem. Did you expect your C++ program to get uninterrupted access to the computer? What progression do you think isn't happening there?
I think you are misinterpreting that. That phrase unambiguously says the loop is preserved on the final binary.
Any program in an OS only gets as much resources allocated to it as the OS allows (OK, in any general-purpose OS written in the past few decades). sched_yield() doesn't actually reduce that allocation in most cases, anyhow: in fact it has a higher chance of increasing the resources that the thread uses spinning in a loop because it's gonna be thrashing the scheduler as well.
I expect an infinite loop to be compiled into, for instance, a jump instruction jumping to itself. The OS, if there is any, is welcome to interrupt and context switch. I don't expect code that has no function calls at all to have a system call inserted into it.