Pre 2020, Spoofing usually meant that a caller was intentionally passing a completely faked phone number in order to hide their identify from a consumer. This is spoofing.
Some systems allow fake caller ID's to be mapped to a consumer's area code & prefix and display the “close” area code to the consumer when calling. This is known as neighborhood spoofing.
Systems also allow real phone numbers to be mapped to a consumer's area code & prefix and display the closest area code to the consumer when calling. This is a grey area but is generally considered spoofing after inclusion by the FTC/FCC.
Many legitimate organizations, with a presence in each state, also transmit local area codes to consumers as branded phone numbers. This may or may not be considered neighborhood spoofing. Generally speaking, if done with good intentions, using real phone numbers, and if that business either has a legal or physical presence in that area, generally the carriers and likely consumers don't mind if you are calling them from a locally branded phone number. Calls of this nature should also be done using the STIR/SHAKEN framework, include Caller Identification (CNAM), and when possible the phone numbers should be registered with the mobile network operators. Always be sure a consumer can call back the phone number and reach a live agent during normal business hours.