Some woke people will argue that they are “white adjacent” when convenient (e.g., the Harvard admissions scandal) but also that they are people of color when convenient (e.g., the Atlanta spa killings).
My understanding is that the term "Latino" includes both people indigenous to Latin America and people whose ancestors were colonists from Spain. The latter group is generally the larger/more well-known one -- that's why "Latino", a Spanish word, is used to describe them.