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Technically Action-Horror would be the most accurate. It is definitely horror-themed, but outside of the one encounter with the one boss that you freeze and shatter... there was nothing scary in the entire game.
It also was the first major diverger in the Resident Evil series from the old-school Survaival-Horror mechanics with fixed cameras and 6\~8 slot inventories.
If it had to have only one category or one main category, it'd definitely be action and not horror. Survival-horror always had a sense of some slowness, building tension, and at least some difficulty learning to control. RE4 is just "aim for head, bang bang dead". Not to mention the *QUICK TIME EVENTS*. Horror games don't(or shouldn't) have QTEs, and RE4 introduced a bunch to a series that never had anything like that before. Look back at Silent Hill 1-3, RE1-CV:X, and other PS2 era horror games. RE4 is very much about action and shooting things before anything related to horror. Plenty of generic humanoids to kill, then generic humanoids with an extra dangerous head.
Its an action horror game...like what? 
If your comparing it to the games before it, then yea it is barely horror but its still a horror game. 
Idk how anyone can change your view because its litetally an action horror game lol. >

There’s a gaming forum im banned from where people frequently say it’s not horror so this is the only place I can argue :( >

The only argument i can see is that they are saying its not primarily horror. Like the action is definitely the predomiment feature, not the horror >

It's a mix of genres with horror being one but not the main standout genre.
Also (as fantastic as the game is) it doesn't have the same feel as the games that came before it which can really make it feel like it lost a bit of its survival horror by comparison in particular. >

This. It took me years to view it as the good game it is, but it definitely was the downturn for the franchise and the dropping off point for a lot of fans.