Aside from the standard definition of furry (as in just having fur), the word furry here is a polysematic word. It means both A and B depending on what context you're talking about. We're not really divided on what it means, just that everybody who you ask is going to give you half of the definition in their own way.

It can mean either or both:

• Any animal creature depicted as being anthropomorphic. It doesn't have to have "überhuman intelligence", just any human-like traits. If you've seen either of the movies Zootopia or Beastars, then that's basically what it is. Here's the commonly-referred-to-and-widely-spread-but-not-official-chart for you.
• The fanbase of similar characters. Anybody with an interest in specifically anthropomorphic characters, a person who specializes in creating said characters of their own, or even wears suits of them is also called a furry.

The really confusing part for some people is that non-furred creatures still count. The Geico lizard for example is perfectly valid to fit in the definition of a furry character. It doesn't have to have actual fur to still be included.

A lot of people mistakenly believe it's just a fetish, or that it has anything to do with bestiality, due to the fact there exists a sexual side of the fanbase. The second one being a bit of an ignorant/un-researched viewpoint as the furry fandom is extremely outspoken about being against bestiality and zoophilia. It's one of the few consistencies across the whole furry fandom.