Hand stitching is understood, in almost every context, to mean "stitched by hand rather than by machine." There are entire communities dedicated to hand-stitching -- be it leather, sewing clothes, etc. --and the various techniques needed to do so. There are countless goods sold as hand stitched with this definition. But I cannot see a single resource that uses "hand stitched" to mean "with a sewing machine."
Where are you getting this impression?