Gelling agents dissolving as a colloid seem contradictory to me.
Because colloid is insoluble. Am I missing something?
Do not take Wikipedia too literally. This is why we still have libraries. The correct term, instead of dissolving should be dispersed. Colloids are dispersions. A gel is a dispersion of a solid in a liquid.
Now there is a thin line between being dispersed and dissolved. It is just the matter of size.
OP further asks: Then, is it incorrect to describe gelling agents like pectin and inulin as 'soluble' dietary fibers?
Soluble dietary fiber (SDF) SDF is hydrophilic, non-crystalline, and
easily wetted by the aqueous gastrointestinal fluid, forming viscous
colloidal dispersions or gels when hydrated.
https://www.sciencedirect.com/topics/food-science/soluble-dietary-fiber
Yes, the the usage of soluble is perhaps a misnomer here. As I stated above, there is a thin line between soluble and being dispersed. Look up the properties of colloids from a good physical chemistry textbook.