Why doesn't inflation cancel out the growth of companies with no alpha?

I feel like this is probably a pretty dumb question that I should really know by now but I don't completely understand it and would love a high-level explanation of where my thinking is correct and where it isn't. Was going to post this anonymously but was feeling strong today and decided I'll let the hate flow. Bring it on (nobody tell the BB's).

So let's say a company performs completely average and doesn't generate any alpha relative to the overall market. For instance, let's say it grows 10% in a given year that the S&P is also up 10%. Is the reason that there is still growth generated beyond inflation because the stock market and the economy aren't directly linked?

Just seems strange/interesting to me how someone could invest in the overall market and earn say 10% a year while inflation would only go 2% and they are increasing their wealth relative to everyone else simply by getting average returns.

My guess would be that since, like earlier stated, the stock market isn't directly linked to the economy and inflation would only hypothetically cancel an average growth out if every dollar in circulation was invested in the stock market, yet in the real world people spend their money on general expenses and things that don't generate returns and that might just be used for consumption, so overall even if you are simply holding the market with your money it will be a +EV move to invest.

Again, I'm sure I am overthinking it here but I am currently on a break at my internship and would love to know where my thought process is off or what I am potentially missing here. Thanks as always WSO!