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Well that's up for debate, let's say your standard MTB tyre has a 2" diameter. Your bead seat diameter is 24,4" adding up to 28,4" total. That's closer to 28".. But you could say most MTB tyres are getting bigger than 2" so you would end up with something closer to 29".
Then you get to the part, where do you start using inches as tyre sizes? I've got some 43mm tyres. Are they road? Maybe tires bigger than 2" should start using inch sizes, so now 1.85" doesn't count as 29?
And this discussion started with rim sizes.. the rims are 24,4", calling it a 29" just seems kind of wrong.. That's like saying your thru axles are 29"...
Sorry for this horrible monologue
Jaap
The reason why is because the outer diameter of the MTB tyres is close to 29" hence the term.
Plus MTB is in inches, road in mm.