What do you consider spoiled?

Lately some of my family members keep calling my 2yo “spoiled,” and it’s starting to irritate me a bit. I don’t think he’s spoiled at all. I’ve always thought a spoiled kid was one who got everything they asked for like every toy and allowed to do whatever. I don’t buy my kid everything (he got 7 presents for Christmas and nothing was over $25), and he gets time outs for things like hitting or not cleaning up. They always call him “spoiled” when we’re out with them and he gets anxious and wants to be held. Of course I hold him. He’s still little and gets comfort from being held by his parents. And I don’t make him do unnecessary things he doesn’t want to do, like today I didn’t make him pet the dogs he’s scared of (even though I know them and they’re perfectly nice and gentle with kids) or go sit with his aunts when he wasn’t ready. He warms up eventually most days and goes to them, it just takes a couple hours sometimes. I don’t know, it makes me feel like a bad parent when they call him spoiled.