I can't accept this strange definitional divide between interpersonal trust and social trust. Trust is an infinitely grey experience, and varies situation to situation and time to time.

Trust is just a word we use to describe how confident we are that the future will correspond to our expectations. Friends can lose the money you gave them to buy something, credit card machines can fail, AIs can order you the wrong product, I could get in a car accident on the way to the store. Do I "trust" that these schemes will go smoothly? Well, mostly (except the AI one).

I don't see a category error because there aren't categories here.

Just because something is distributed over a spectrum and not clumped into clean distinct boxes doesn't decrease the utility of discussing the properties of different areas of the spectrum.

It's absolutely the correct distinction to draw. AI will be able to present as a person while behaving as a system. We don't have intuitions for dealing with that.