I’d call it both. There’s the use case of adding small react components sprinkled through an application, in this case it’s a library.
Then there’s the use case of having everything be a react component, and you use lots of react specific libraries, and a react router, react form handler, etc etc. that’s react the framework.
Then there’s the use case of having everything be a react component, and you use lots of react specific libraries, and a react router, react form handler, etc etc. that’s react the framework.