You are correct. The word “homo” literally means human.

Homo sapiens are the only living humans, but Homo Habilis, Homo Erectus, Homo Neanderthalus are all humans also.

However we usually use the term “archaic human” or even change human to “hominid” to prevent confusion between “modern humans”.

You weren’t wrong, but this is a kind of jargon which can confuse people.