While it's true that alibi has a legal meaning that is "evidence to prove the accused was at another place at the time of the crime", it is also used colloquially to mean "excuse". When used in this way, it doesn't even have to mean "I was somewhere else". Colloquially, it can be used to mean almost any kind of excuse or mitigating factor. Of course, this is a misuse of the word but that kind of thing happens all the time in English.