We actually do mean $\ce{Mg^+}$ here. The idea is to show what factors are involved when an alkaline earth metal forms stable compounds with $\ce{M^{2+}}$ ions whereas an alkali metal favors $\ce{M^+}$. In this case, as pointed out in some of the comments, $\ce{Mg^+}$ is bulked up by the electron that remains in the relatively diffuse, loosely held $3s$ subshell. You need to remove that electron, making $\ce{Mg^{2+}}$, to get a compact ion that gives good lattice energies in ionic crystals.
Scandium monosulfide
Although $\ce{MgCl}$ and monatomic $\ce{Mg^+}$ are not real materials, the case of scandium monosulfude, $\ce{ScS}$ is instructive. A simple ionic model proposing $\ce{Sc^{2+}}$ and $\ce{S^{2-}}$ would require the scandium to retain a valence electron in an outer-shell orbital, apparently $3d$. In an early-group metal such orbitals are diffuse and, if occupied, would inhibit tight binding of the oppositely charged ions. Instead, according to Ref. [1] which identifies $\ce{ScS}$ as a metallic conductor, the extra electron per scandium atom is delocalized into a conduction band. This allows the sulfide ions to bind tightly with compact $\ce{Sc^{3+}}$. Thus scandium monosulfide is stable not as a conventional ionic salt, but as a compound that combines ionic and metallic characteristics.
Reference
- Dismukes, J. P.; White, J. G. (1964). "The Preparation, Properties, and Crystal Structures of Some Scandium Sulfides in the Range Sc2S3-ScS". Inorg. Chem. 3 (9): 1220–1228. https://doi.org/10.1021/ic50019a004