>>58103223The lore also blatantly calls it a transformation to further prove it.
"Once upon a time, on an island called Altomare, there lived an old man and an old woman. One day, as they were walking, they found a young brother and sister who were injured. The old man and woman nursed them back to health. However, there came a day when black clouds appeared and darkness began to rain. The island was nearly swallowed up. But then, before the old man and woman’s eyes, the siblings transformed. They were the Pokémon, Latios and Latias. They called many of their friends, who brought a jewel, and together they fought off the darkness. The jewel was called the Soul Dew.
Peace returned to the island. They say that the Soul Dew remains on the island, and even now, Latios and Latias sometimes return…"
The games and manga may have it as an illusion, but the anime/movie has it intended that Latias does utilize a proper human form.