In the book of Goldstein, at page 200, the author argues while deriving the Euler's equation(s) that
$$\left.\frac{d\vec L }{dt }\right|_s = \vec \tau,$$ where subscript $s$ denotes the space frame.
and since $\left.\frac{d\vec L }{dt }\right|_s = \left.\frac{d\vec L }{dt }\right|_b + \vec{\omega} \times \vec L,$ we have
$$\frac{d\vec L }{dt }_b + \vec{\omega}\times \vec L = \vec \tau, \tag{*}$$
Then he goes on and calculates $\vec L$ wrt body frame, and derives the rest of the equation.
However, in the equations $(*)$, $\vec L$ is measured wrt space frame, but whose derivative is taken wrt body frame, whereas, the author measures $\vec L$ wrt body frame so that $I$ is a constant tensor, and derives the equation like that.
Clearly, what he derives, namely $(*)$, and how he uses it are different, so how can he do this and that can be a valid argument ?
Edit:
Let assume that we have a body with a fixed point in space, and let define two reference frames with origin on that fixed point, $O, O'$, the former is an inertial frame whose coordinates are fixed in space, and the latter one is a non-inertial frame whose coordinates are fixed on the body (hence rotates with the body); the former will be called the space, and the latter will be called the body frame.
Let $w$ denote the angular velocity of the coordinates of $O'$ wrt $O$ frame. It can easily be proven that as long as the body frame's origin is on the body and coordinates are fixed on the body, $w$ is independent of body frame we choose to measure, so that we can talk about the angular velocity of the body itself.
Now, w.l.o.g, choose $O'$ as our body frame, and measure $\vec L$; it can be derived that $\vec L = I w$. In here, we calculated $I$ wrt the coordinates of $O$, but since the only difference between $O$ and $O'$ are rotation of coordinates, $I' = IR$, where $R$ is some a rotation matrix. The important thing is to note that since the coordinates of $O'$ are fixed on the body, $I'$ is not a function of time, whereas because of the motion of the body around the origin $I$ is a function of time.
The problem was if we provided $w$ to $O'$, calculating $\vec L$ within $O'$ would not be the same as it is calculated within the space frame; however I can see that the only difference is that the moment of inertial matrix changes with a rotation, i.e with a change of basis; the important point is to note that $I$ is actually the "same" matrix as long as the origin is fixed.
Lastly, for my concerns provided in the comments, $\vec L$ is a frame dependent vector, but it is the same vector as a vector in physical space; you just look at from different angles and measure different things, but get the same result at the end.