It says "Looks like 1920 x 1080" which means it's actually 3840 x 2160 and everything (text, lines, objects) is drawn twice as wide and twice as tall. This is a HiDPI mode.
This is different than scaling a low resolution mode 1920x1080 up to 4K because objects have 4 times as many pixels to be drawn with.
Use SwitchResX to see which modes are HiDPI or not. Some modes are scaled. For example "Looks like 2560x1440" is a HiDPI mode that uses 5120x2880 pixels which are scaled down to 4K for output.