It's important to output-encode for the correct context. By default, Django encodes template variables for an HTML context, which can allow XSS when output inside a script tag or as a JavaScript file.
Out of curiosity I've started looking in Django docs (I'm more of a flask person myself), and they seems to confirm what you're saying. More to the point, the `strings` are the main issue. The default autoescape actually encodes ' and " as HTML entities, but doesn't encode a backslash, so leaving a \ at end of a ' or " string would escape the string ending - this would be exploitable if the attacker controls two strings of the same "type' in a row.
I guess this is the proper way to do it: https://docs.djangoproject.com/en/5.1/ref/templates/builtins...
<script>const user_input = "</script><script>alert(1)//"; ...