As suggested by the Maxime, I am turning my comments into an answer.
The notion of $\lambda$-good cardinal has appeared in the literature under a different terminology and in an equivalent form. In their paper "Internal sizes for $\mu$-abstract elementary classes", Lieberman, Rosický and Vasey introduce the Definition 2.2, whose first item defines a $\lambda^+$-closed cardinal $\kappa>\lambda$ as a a cardinal such that for each $\mu<\kappa$ one has:$$\mu^{<\lambda^+}:=\Sigma_{\theta<\lambda^+}\mu^{\theta}<\kappa$$. Clearly, a $\lambda^+$-closed cardinal is $\lambda$-good, but also, if $\kappa$ is $\lambda$-good, since $\lambda<\kappa$ we necessarily have: $$\mu^{<\lambda^+} \leq \lambda \mu^{\lambda}=\max(\lambda, \mu^{\lambda})<\kappa$$
and so $\kappa$ is $\lambda^+$-closed. So the two notions are equivalent, as one can always assume $\lambda<\kappa$ in the definition of a $\lambda$-good cardinal $\kappa$, as one is essentially interested in infinite cardinals.
The second fact is likely folklore, but since it is just an easy computation one could just include it in a parenthetical remark. The cited paper in fact discusses $\mu$-closed cardinals in the context of the Singular Cardinal Hypothesis and weakenings of it, and contains similar folklore remarks like e.g. the first two sentences of Remark 2.3.