The Times, of course (they're the ones who used it, not you). I phrased it like that because "I do not think that word means what you think it means" is a quote from a movie.
The Times probably understand "Catch-22" to mean "something illogical and bad," which is what Heller's book "Catch-22" was full of. But you are right, the correct definition is a lose-lose situation.
Just curious, which movie is it, an old horror flick?