That's technically true, but I still think it's reasonable to casually refer to Python as "interpreted," since it conveys useful ideas, although those ideas are more accurately conveyed with different phrasing.
That said, for more precise discussions, what you pointed out is valid and important. One of the early questions I ask in a programming interview is to explain some high-level differences between two languages they're familiar with, which is often Java and Python. One of the common responses I get is that Java compiles to bytecode which is executed by a VM, while Python is interpreted. Of course, I point out that CPython is also compiled to bytecode and executed by a VM.
That said, for more precise discussions, what you pointed out is valid and important. One of the early questions I ask in a programming interview is to explain some high-level differences between two languages they're familiar with, which is often Java and Python. One of the common responses I get is that Java compiles to bytecode which is executed by a VM, while Python is interpreted. Of course, I point out that CPython is also compiled to bytecode and executed by a VM.