In our virtual work skill classes, we use this to help attendees understand the difference between the two.
Digital Literacy:
Understanding how to find your way around MS Teams (for example) ie. How to navigate the app, find an appropriate channel, make an inline comment, check for an update etc.
Digital Fluency:
How to use the features available in the app to tell a story, convey an idea or concept to the rest of your team using all the communication channels available to you in the app, ie. text, images, audio and video.
Both these competencies are essential to be able to work with a distributed team.