That's exactly what it's supposed to mean. And, as
@ecuacor mentioned, if NJMS is playing by the rules (and most schools do), they will never call you off their WL if you are CTE elsewhere.
CTE is the mechanism schools use to lock in their classes. Poaching will create chaos for the schools. As a result, they have pretty much honored it since it was first implemented in 2019. There are plenty of people on everyone's WLs who are not committed elsewhere to make calling people who are CTE elsewhere unnecessary.
The exception is schools outside AMCAS, like AACOMAS. (TMDSAS also have access to the CYMS tool!) Other than schools like AACOMAS, or Caribbean, you should absolutely consider a CTE selection to be final and irrevocable.