acid base - MgCl2 acidic or neutral in water?

I'm currently taking chemistry 12. On our test we were asked, when given a $0.1~\mathrm{M}$ solution of certain compounds whether the resulting solution when added to water would be acidic, basic, or neutral.

At first, I thought the solution would be neutral, because we learnt in class that alkali earth metals and chloride are spectator ions and therefore don't interact with water and pH.

However, I then realized that $\ce{Mg(OH)2}$ has low solubility in water, and I assume that adding $\ce{MgCl2}$, would dissociate and then precipitate $\ce{Mg(OH)2}$ from the solution, therefore the resulting solution would be acidic. My final answer was acidic.

The teacher marked my answer wrong, but when questioned could only say that $\ce{Mg}$ and $\ce{Cl}$ are both spectators, but was unable to give direct contradictory proof against my answer.

I looked elsewhere online and Wikipedia states that anhydrous $\ce{MgCl2}$ is a Lewis acid, despite being a weak one. But anhydrous seems to mean without water, so I currently have no idea which answer is correct.

I would like an explanation to why it is acidic or neutral and why the contradicting argument (both spectators vs low solubility of $\ce{Mg(OH)2}$ ) is invalid or flawed.