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That is one use of the word, sure. But it can be interchangeable with hypothesis. https://en.wiktionary.org/wiki/theory There is nuance to this term.
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But the roots of words aren’t what words mean in modern English. Otherwise, spirit would mean ‘breath’. Logic doesn’t mean “words” even though it came from logos. Besides all that, we’re on “science” memes so it doesn’t really matter what the term means outside of that world.