You are mishandling the word of God, MC. The context of James 2 is not about our justification before God. It is about how faith is expressed in actuality on this earth.
Once again, I submit that if our works justified us before God, then there was no reason for Christ Jesus death and resurrection.
James 2:10-26
[10]For the person who keeps all of the laws except one is as guilty as a person who has broken all of God’s laws.
[11]For the same God who said, “You must not commit adultery,” also said, “You must not murder.” So if you murder someone but do not commit adultery, you have still broken the law.
[12]So whatever you say or whatever you do, remember that you will be judged by the law that sets you free.
[13]There will be no mercy for those who have not shown mercy to others. But if you have been merciful, God will be merciful when he judges you.
[14]What good is it, dear brothers and sisters, if you say you have faith but don’t show it by your actions? Can that kind of faith save anyone?
[15]Suppose you see a brother or sister who has no food or clothing,
[16]and you say, “Good-bye and have a good day; stay warm and eat well”—but then you don’t give that person any food or clothing. What good does that do?
[17]So you see, faith by itself isn’t enough. Unless it produces good deeds, it is dead and useless.
[18]Now someone may argue, “Some people have faith; others have good deeds.” But I say, “How can you show me your faith if you don’t have good deeds? I will show you my faith by my good deeds.”
[19]You say you have faith, for you believe that there is one God. Good for you! Even the demons believe this, and they tremble in terror.
[20]How foolish! Can’t you see that faith without good deeds is useless?
[21]Don’t you remember that our ancestor Abraham was shown to be right with God by his actions when he offered his son Isaac on the altar?
[22]You see, his faith and his actions worked together. His actions made his faith complete.
[23]And so it happened just as the Scriptures say: “Abraham believed God, and God counted him as righteous because of his faith.” He was even called the friend of God.
[24]So you see, we are shown to be right with God by what we do, not by faith alone.
[25]Rahab the prostitute is another example. She was shown to be right with God by her actions when she hid those messengers and sent them safely away by a different road.
[26]Just as the body is dead without breath, so also faith is dead without good works.
What your post proposes is not "the separation" it's just the dilemma created by Lutheran vocabulary & theology. What is at at stake is what saint James wrote - Think of our father Abraham. Was he not justified by the act of offering his son Isaac on the altar? ... So you see, a person is justified by works, and not by faith alone. - a person is made righteous by works and not by beliefs alone.
You are made just both by what you believe and by what you do. You are justified both by what you believe and by what you do. You are justified both by faith and by works.
