@Joyce4 I do. My place is also in the house but separate.
The only listing category I can use is;
"Guest suite
Listing type: Entire home/apt"
There are no other options. But after 2 years, so far so good. Ours has a separate entrance and is self contained - we have to check for cars to know that guests are there or not.
So "Yes it is misleading" but to get them change the AirBNB categories for ordinary operators? LOL.
Cheers, Charles