It isn’t intentionally misleading, at best it is an over simplification of what is happening.

It is a fact that there is a government lead effort in various states to ban books from k-12 libraries. That part of this is not up for debate because it is happening. So they are in fact “banned”. As a society we generally accept that words have more complicated or nuanced meanings when connected to other words, as “banned” is in this case.

We also as a society generally accept that those other words may be implied or require looking at something for more than a minute to understand the context. If you are in a country where a book is actually banned, I would wager that you would likely just say “this book is banned” implying it is banned where you are instead of adding in “this book is banned here in X” since it would be unnecessary to say and would be generally understood.

If you don’t like the word than propose another word.