Thank you Avangi and Clive, I had looked in other dictionaries this time and not Merriam Webster's, but when I Googled the term again I, too, found that it's archaic in the sense 'embrace'. (At more than one place I didn't see it listed as outdated in the sense 'to envelope', though, hence my confusion remained. But now that you both say it's archaic, I'm sure it is in both meanings.)