Yes, that's the case. When you're using gesture navigation the only visible UI left is the horizontal bar at them bottom. Apps adjusted for gesture navigation will also draw behind that line.
Gesture navigation is still an option which might not be enabled by default on all devices, but I strongly suggest trying it out. I used it quite some time with the latest release candidates of Android 10 and once you're used to it, you don't want to go back. Especially the back swipe is really nice.
How the final implementation came to be is covered by an excellent blog post from Google: https://android-developers.googleblog.com/2019/08/gesture-na...