I thought by that you meant spiritual Israel comprises saved Jews together with saved Gentiles, so that spiritual Israel, aka the Israel of God, is the church. I was ready to agree with your post, until I saw the next two posts.
I didn't see Y was making a distinction. Now I see that you see he sees a distinction.
There has always been a spiritual Israel, that God calls
my people expressed by the covenant relationship:
I will be their God, and they will be my people.
God says of rebellious Israel:
Hos. 1:9 Then the Lord said, ‘Call him Lo-Ammi (which means “not my people”), for you are not my people, and I am not your God.
10 ‘Yet the Israelites will be like the sand on the seashore, which cannot be measured or counted. In the place where it was said to them, “You are not my people”, they will be called “children of the living God”.
See Rom. 9:24-26
And he says of his redeemed, both Jew & Gentile:
Rom. 9:
24 even us, whom he also called, not only from the Jews but also from the Gentiles? 25 As he says in Hosea:
‘I will call them “my people” who are not my people;
and I will call her “my loved one” who is not my loved one,’
26 and,
‘In the very place where it was said to them,
“You are not my people,”
there they will be called “children of the living God.”’
Notice the fulfilment of the covenant of peace:
Eze. 37:26 I will make a covenant of peace with them; it will be an everlasting covenant. I will establish them and increase their numbers, and I will put my sanctuary among them for ever. 27 My dwelling-place will be with them; I will be their God, and they will be my people. 28 Then the nations will know that I the Lord make Israel holy, when my sanctuary is among them for ever.”’
Rev. 21:1 Then I saw ‘a new heaven and a new earth,’ for the first heaven and the first earth had passed away, and there was no longer any sea. 2 I saw the Holy City, the new Jerusalem, coming down out of heaven from God, prepared as a bride beautifully dressed for her husband. 3 And I heard a loud voice from the throne saying, ‘Look! God’s dwelling-place is now among the people, and he will dwell with them. They will be his people, and God himself will be with them and be their God.
There is no distinction between redeemed Israel & the church. We are one redeemed people of God, :
Gal. 3:26 So in Christ Jesus you are all children of God through faith, 27 for all of you who were baptised into Christ have clothed yourselves with Christ. 28 There is neither Jew nor Gentile, neither slave nor free, nor is there male and female, for you are all one in Christ Jesus. 29 If you belong to Christ, then you are Abraham’s seed, and heirs according to the promise.