Yep, it's all about how near or far your eye tries to focus on. Even if the display element is an inch away from you, the optics in a VR/AR headset makes it as if it's several inches to a few feet away and your eyes focus accordingly. That's what the lenses in the smartphone VR goggles like Google Cardboard does as well.RE: Comments vis-à-vis Vision Pro, this may not be as it seems. I understand it’s the focal length that is the driving factor, not the distance to the actual screen/s power se. This is evidenced by near sighted people still needing to wear their prescription when using VR/AR.
That being said, the timing of the availability of this feature is still amusing.