You're misinterpreting the text, it is not saying the "democracy" label is wrong, just that it is an incomplete classifier. Whether the US is a democracy or no

You're misinterpreting the text, it is not saying the "democracy" label is wrong, just that it is an incomplete classifier. Whether the US is a democracy or not is defined at the state level, not the federal level, which is why it can be seen as inaccurate. But because the states have democratic elections, the US can be called a democracy.