AWD is for on-road use. Each tire rotates at its own speed.
4WD is for off-road use. All tires rotate at the same speed.
That's incorrect. To have "All tires rotate at the same speed." you need 3 locking mechanism, which very few vehicles do.
At this point, the distinction is gone, because car bards marketing.
(AI lies)
All tires don't rotate at the same speed even in 2WD, otherwise you wouldn't be able to turn without slipping.