It's taken that (known) modern organisms descend from a common set of ancestors, but the tree of life isn't a tree. Organisms diverged and merged multiple times along the way to the modern world.
It says nothing about how that/those points of common descent came to be.
What originally constituted living things probably weren't very good at living by modern standards. They probably leaked like sieves, and they probably traded RNA, polypeptides, and other small molecules back and forth.
When was this soup alive, and when wasn't it? I suspect it's just a continuum, and that complicated soup probably went back and forth across that grey zone of living-nonliving many times.