Yes, and I agree with you, but it is designated as a "live-action" feature because it was "shot" on a soundstage (or more precisely a "capture volume") with VR "cameras" using on-set style methods, and rendered photorealistically. It’s basically a studio designated label to differentiate it from the *actual* animated original, but most, despite not totally agreeing with it, accept it as being "the live-action" version.
Just as the difference came between motion-capture films, Frozen II was a tradigitally-animated keyframe film, which is the biggest difference between how these things are generally described and assigned, just to retain *some* sort of balance and clear distinction between them.
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