
It loses some of its meaning in translation, but the definition you’re referring to is more specifically any nation. The US is a goy, France is a goy, even the “nation of Israel” (specifically for example, not my views don’t come at me) is a goy. The “goy” in question is a very outdated term. It was used among Jewish communities to describe another Jewish person who was not a great member of their community. Not sharing, avoiding paying a fare, or being rude would get you the designation.
As clarity, the term doesn’t quite mean “acting like the stereotype,” it just means acting less than neighborly. It was taken by antisemites to be used as a slur. It’s unique in the sense that the word was taken from the community itself to be used against said community. Slurs are typically created by external bad actors and eventually taken by the community in protest, but this one was a reverse of that.