The claim regarding username is 'i can make my username "signout" and it signs people out when they click my profile', not that it can contain <img src=/signout>, so no html injection here.
Visiting https://superlogout.com/ logs you out of gmail with a cross-site GET request and it's not considered a vulnerability by google [0]
Posts could contain a safe subset of html (no scripting) including <img> as a feature - that used to be an acceptable design choice. In connection with the /signout it did allow for some unfortunate shenanigans - the kind of bug you just add additional sanitization for and move on, nothing indicative of a below average code quality.
>If you don't want to call that an XSS, what would you like to call that?
I would call the version you described a HTML injection to CSRF, but as Dylan16807 noted apparently it does fit OWASP's wide definition of XSS: "Since then, the term has widened to include injection of basically any content." [1] But that's not what happened, there was no HTML in usernames and HTML in posts was intended.
[0] https://bughunters.google.com/learn/invalid-reports/web-plat...
[1] https://cheatsheetseries.owasp.org/cheatsheets/Cross_Site_Sc...