Well, we know from the rest of Augustine’s writing that he believed that Jesus and Mary had flesh. One sentence in isolation can be hard to analyze. That is why it is important to look for as much context as possible.
Augustine explains more about the flesh in Sermon 272:
“Inside each of you, thoughts like these are rising: “Our Lord Jesus Christ, we know the source of his flesh; he took it from the virgin Mary. Like any infant, he was nursed and nourished; he grew; became a youngster; suffered persecution from his own people. To the wood he was nailed; on the wood he died; from the wood, his body was taken down and buried. On the third day (as he willed) he rose; he ascended bodily into heaven whence he will come to judge the living and the dead. There he dwells even now, seated at God’s right. So how can bread be his body? And what about the cup? How can it (or what it contains) be his blood?” My friends, these realities are called sacraments because in them one thing is seen, while another is grasped. What is seen is a mere physical likeness; what is grasped bears spiritual fruit. So now, if you want to understand the body of Christ, listen to the Apostle Paul speaking to the faithful: “You are the body of Christ, member for member.” [1 Cor. 12.27] If you, therefore, are Christ’s body and members, it is your own mystery that is placed on the Lord’s table! It is your own mystery that you are receiving! You are saying “Amen” to what you are: your response is a personal signature, affirming your faith. When you hear “The body of Christ”, you reply “Amen.” Be a member of Christ’s body, then, so that your “Amen” may ring true!”
He goes on to talk about the role of the elements:
“But what role does the bread play? We have no theory of our own to propose here; listen, instead, to what Paul says about this sacrament: “The bread is one, and we, though many, are one body.” [1 Cor. 10.17] Understand and rejoice: unity, truth, faithfulness, love. “One bread,” he says. What is this one bread? Is it not the “one body,” formed from many? Remember: bread doesn’t come from a single grain, but from many. When you received exorcism, you were “ground.” When you were baptized, you were “leavened.” When you received the fire of the Holy Spirit, you were “baked.” Be what you see; receive what you are. This is what Paul is saying about the bread. So too, what we are to understand about the cup is similar and requires little explanation. In the visible object of bread, many grains are gathered into one just as the faithful (so Scripture says) form “a single heart and mind in God” [Acts 4.32]. And thus it is with the wine. Remember, friends, how wine is made. Individual grapes hang together in a bunch, but the juice from them all is mingled to become a single brew. This is the image chosen by Christ our Lord to show how, at his own table, the mystery of our unity and peace is solemnly consecrated. All who fail to keep the bond of peace after entering this mystery receive not a sacrament that benefits them, but an indictment that condemns them.”
earlychurchtexts.com/public/augustine_sermon_272_eucharist.htm
I find so much meaning in this. I think Augustine goes so much deeper than a physical conversion. He delves deep into the images and the spirituality. I see no signs that he is writing about anything except a symbolic flesh. A few quotes of his are vague and could be taken either way in isolation. I have seen websites that quote a phrase earlier in this sermon: “For what you see is simply bread and a cup - this is the information your eyes report. But your faith demands far subtler insight: the bread is Christ’s body, the cup is Christ’s blood.” - as proof of Augustine believing in a physical conversion. I think he is taking this in a very different way. Besides the vague statements he also states directly that John 6:53 is a figure and explains it as a “mere physical likeness” with much spiritual meaning. I think when all of the information is compared we can see why Schaff and Kelly say that he was similar to Cyprian and Tertullian in their symbolic view of the Eucharist, but took it deeper into a spiritual view similar to Calvin’s reformed understanding.