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Yes, I agree with you.
I just wanted to add that at the time "socialism" was any answer to the question "how to structure society so its members benefit the most?"
Nazism was such an answer, and it was "eliminate all who don't contribute".
Of course the concept of socialism later evolved and got more strict so that Nazism doesn't count anymore.
The concepts of socialism were pretty nailed down by the 1930's, and anyone back then who was familiar with any of the leading socialist ideas would not call nationalism or an ethno state socialist.
The Nazi's called their party socialist because it was popular with the working classes at the time, but they were not actually socialist in policy whatsoever, it was only ever a branding/optics choice.
Consider at that same time the Spanish Civil War was happening, which involved a huge faction of Anarchists spreading the much older ideas of Kropotkin and Bakunin, and they rightly called the Nazi's Fascist, and absolutely did not consider them a twisted offshoot of socialism.