I had someone say something like this to me once when I reported there was a problem with the project I was working on. He was perfectly straight faced and totally believed it. "It's not a problem, it's an opportunity".
I felt like breaking his legs and asking how the opportunity was working out for him.
I've used the phrase myself a few times since, but only with a voice dripping with irony.
Calling a pile of cr@p a rose doesn't make it smell any better, and changing words like that devalues communication and just causes confusion.
I swear, if I ever end up back in a big company and someone says "We've got an opportunity here" I'm just going to say "Great! Enjoy it, I'm going out for lunch."