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What's in dispute is whether there was ever a card trading site hosted at mtgox.com, not whether that's what it stands for. Even if it never hosted a card trading site, it is generally assumed that the domain was originally purchased for one.

It almost certainly did, but it was never used for that purpose.

It certainly did, which is easily confirmed with archive.org:

https://web.archive.org/web/20070525044536/http://mtgox.com/...

Clarification: MTGOX was intended to stand for that, but the card exchange was never finished, probably for lack of interest.

Which means Mt.Gox did originally indeed stand for Magic The Gathering Online eXchange. Doesn't really matter if it was finished or not when talking about what the origin of it is.

McCaleb has said that MtGox was at least at some point used for trading or buying cards.