To me it always means describing the desired state of your infra in structured data, storing that in git, and run controller to reconcile it against the actual infra.
If your GitOps engine has to compile/run the "code" to uncover the desired state, that defeats the purpose of GitOps and is no better than running your hand crafted release bash script in a CI/CD pipeline.
It should have never been called infra-as-code, but infra-as-data.
See "The Rendered Manifests Pattern": https://akuity.io/blog/the-rendered-manifests-pattern/