It’s completely accurate to say “literally” while paraphrasing.

1. No is isn’t. Use words like “essentially” for that. “It’s literally what they said” is in fact a lie.
2. Especially not when inventing a bunch of absolutism that wasn’t there and interpreting it with a whole bunch of extra, much easier to debunk nonsense that you added yourself.

people insisted that sex has no meaningful use even in medical contexts.

I didn’t see that in this thread. Oh, unless you’re meaning it “literally” with your version of the word “literally” which doesn’t man literally literally and for some reason includes absurd straw man content.