Dead in scripture means separated not inability.
Death is inability in its purest form. And, no, it doesn't mean that; dead means dead, as-in completely spiritually dead - just as a physically dead person is physically dead.
Why did God have to make those in the below verse spiritually alive WITH CHRIST THROUGH GRACE UNTO SALVATION, if not spiritually dead (and notice that God alone gave them spiritual life - those who were dead didn't assist Him in any way)?
[Eph 2:5 NIV] 5 made us alive with Christ even when we were dead in transgressions--it is by grace you have been saved.
[Col 2:13 NIV] 13 When you were dead in your sins and in the uncircumcision of your flesh, God made you alive with Christ. He forgave us all our sins,
As brightfame52 posted, if not spiritually dead, then why would God make someone who is already spiritually alive spiritually born-again?
[1Pe 1:23 NIV] 23 For you have been born again, not of perishable seed, but of imperishable, through the living and enduring word of God.