Might We Be Misunderstanding The Use Of The Word ‘Spirit’ In The Bible, As It Relates to Living Beings?

I think you are trying to read things into what the Bible says that it does not say. Hebrew scholars have reviewed the translations and found the word spirit to be appropriate. What you are suggesting is that because ancient peoples did not understand the concept of a spirit that God does not as well. That is a leap of logic that I cannot take with you.