That's a valid interpretation of MB's use of the term, but there's another confounding factor to its use. Consider that no other character ever makes the distinction between human and augmented human- there's no real evidence that there's a coherent legal or social line anywhere else in the world (Rami or Maro calls it "spliced" in AC, and there's evidence that suggests MB's idea of augmentation is idiosyncratic)- rather, the term exists in its clunky as hell glory because Murderbot, specifically, really cares about the distinction: augmented humans are much more likely to catch on to unusual feed activity from a rogue SecUnit, so it has had to care about augmented humans as a distinct class from humans in general as a matter of survival. (Not my idea, for the record- I could take it or leave it, but Martha Wells asserts this in multiple interviews- I gather that's her own rationale for the "humans and augmented humans" term as a writing decision.)
Honestly, Murderbot doesn't just "translate" language, I would say it tends to genericize terms, and this is part of a broader motif around Murderbot's relationship with language. Aside from in translation, Murderbot also just uses generic terms to control its story and express its viewpoint better- there's "oh deity" and "Starchy Foods!!!!" as obvious places where this had to be translated in some way from something, but notice how it doesn't get translated into anything in particular in Murderbot's presumed Standard Whatever Dialect lexicon. Why? Because while details about food and religion are of critical importance to human culture, they're not important to our rogue machine intelligence protag. (Amena's "fried vegetable crunchy things" are another classic example.) You see this in action throughout the series: it never describes an animal by specific name ("avians," "fauna"), it barely describes the weapons it gets into fights with ("energy weapon," "armor piercing projectile weapon"- notice it never calls anything a shotgun or grenade let alone specific gun nerd terms), and it especially never uses a brand name or even a genericized brand name to describe an item or product if the most generic term will do ("feed interface," "transient rest tube" but not any term resembling iPhone or capsule hotel). And of course, it never names the company that owned it, explicitly replacing the name even in Bharadwaj's dialogue when she asks about it. Obviously, choosing to avoid the use of corporate names allows it to take back a little control over its own language from the likes of its former owners. Meanwhile, it'll name the systems it interfaces with to a high degree of specificity or panache: "HubSystem," "AdaColSys, "Asshole Research Transport," "hotelEnvironmentAccessAndMobilitySystem (MobSys for short)", etc.
We know from the company name conversation with Bharadwaj that MB, as writer of its diaries, does just change around the terms that other characters use in their dialogue if it suits it. Which details it chooses to express and which details it chooses to genericize are functions of its attention, interest, and agenda. As @grison-in-space says in another reblog, Murderbot's not just translating other languages into its own, but also translating the world it's experiencing into its own idiolect—taking back control of its own story through the words it chooses to tell it.
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