I don’t think McCarthy had reference counting in mind when he coined the word garbage collection. I think it’s more likely that people say garbage collection when they actually mean the more general term of automatic memory management. No one would ever mistake arena based memory management as a form of garbage collection, for example, even though it is obviously a form of automatic memory management.
Lay people also use wrong terms when talking about other scientific fields, that doesn't make them right by quantity of use.