If we use the definition of inertia as "a property of matter by which
it continues in its existing state of rest or uniform motion in a
straight line, unless that state is changed by an external force".
[...]
It seems like when $m \neq 0$ the system does not have inertia
because friction stops the uniform motion in a straight line?
The way you phrased your question makes me think you have a misunderstanding regarding the concept of inertia.
Inertia, when it comes to massive (non-zero mass) objects, is an always-present property that gives rise to the tendency of matter to retain its current state of motion1, absent a net force. But that definition perhaps misses to communicate a more important fact: inertia is the tendency of an object to resist changes to its current state of motion1 (i.e. to resist acceleration).
1 "State of motion" just means instantaneous speed and direction.
But, note that mass is a measure of inertia (a way to quantitatively express it), and that therefore Newton's second law, $m\ddot{x}=F$ (or $\ddot{x}=F/m$), has to do with inertia as well. Also note that the idea of inertia being a "tendency to resist acceleration" breaks down at $m = 0$ (the model has no notion of / does not apply to / does not encompass truly massless particles).
So, it doesn't matter if the object in question is being accelerated (speeding up, slowing down, or on a curved path), it still has inertia (for example, if you try to apply some acceleration in order to deflect it from whatever trajectory it's currently on, the force you'll need to supply will depend on the object's mass/inertia). It's just that such an object is not moving inertially - it's not in uniform motion (rest being a special case of it).
Regarding the context of your question, perhaps "neglecting inertia(l effects)" now makes more sense—it just means treating the inertial term (acceleration term) as negligible.