You're correct ... it does cause some confusion. But CAD can usually be used for both purposes ... it depends on what you're doing. Many a time the design process is fine-tuned using CAD (or similar) to get stuff like sizing, proportion, etc. correct. A hand sketch is easy to fudge, but using CAD makes it more accurate (e.g. you can design the size of rooms in a building to be decent sizes, but a simple hand sketch can have rooms of either way too large / small - without the designer noticing easily). Drafting (or also called drawing) is usually taken as the more technical aspect - i.e. producing the construction documentation, which is usually done in totality in CAD.
There are other programs which specialize more in the design phase, and a lot in the in-between-stage of presentation. And most are like AutoCAD which does a little of all but leaning more to technical, and others specialize in only specific types of design/drafting (e.g. Mechanical, Architectural, Structural, etc.).