Gravity-induced entanglement (GIE) is widely regarded as key evidence of nonclassical gravity. Recent work, however, argues that a classical gravitational background can generate entanglement through virtual matter propagation between separated masses. Here we show that this mechanism is negligible once realistic matter dynamics is taken into account. For bound or condensed matter, the binding potential converts the claimed long-range matter-mediated interaction into an exponentially short-ranged one, with an attenuation length of only a few picometers for representative binding energies—well below atomic dimensions and therefore negligible under experimentally relevant distances. For unbound matter, the channel remains negligible before significant wave-packet overlap, while after overlap the packets no longer represent two spatially separated subsystems. Thus the proposed classical matter-mediated mechanism does not challenge the usual interpretation of GIE as evidence for nonclassical gravity once physical localization and finite-time matter dynamics are treated consistently.