I've only ever heard this term from conservative Americans that I know, I've always wondered why it's not just 'Abrahamic values' considering that Islam is an expansion on the other two faiths and all three share most of their values between them. I also wonder why it's not just 'Christian values' considering that historically Jews have suffered poor treatment and mistrust from Christian powers.
I suspect that this term came about recently because of the close ties between the US and Israel in combination with Islamophobia from terrorism/wars in the middle east, but that's purely anecdotal.
A great answer by /u/kugelfang52 explains the important role of WWII in the propagation of the phrase very well, while an answer of mine gives a broader answer about why the phrase came about and how its use changed over history. Hope that helps!