Great call out. And I've noticed there is a lot of gray area in during passive income depending on who you talk to and what their ideas are for creating it. I read a great article on thebalance.com and the write described it as "income you generate by spending very little time and/or money getting started and continue to collect from in the future without putting in extra hours" specifically he was giving instructions on how to set up your own t-shirt selling site and have himself one night to complete it. In the end it was not a ton of money each month but for over two years he collected 300 a month on average for one night of computer work..
I started investing. I paid off my house - renting can be good or bad and is mostly passive to me because you do have to maintain the property. But there's air bnb and such that are more profitable in the right areas. Around texas tiny home parks are starting to pop up. And I've met several ppl that purchase luxury condos and apartments in city locations and hire property management companies to rent them as corporate short term.
In the end the idea is to continue to add one income steam after another becaue they all seem to start well then settle way down. But if 10 projects are generating 300 a month each and you only had to spend a day or so setting up each then bingo
The hard part is coming up with the plan and following it through.