Extra pedantic: no, because "physically" ends in "-ly". :-)

(Rule 3 here: https://www.grammarbook.com/punctuation/hyphens.asp)

If you want to be strict, maybe the book title should be "physics-based". If we are a bit more liberal, we can accept "physically based". "Physically-based" might be the most wrong of the three.

https://english.stackexchange.com/questions/165416/is-physic...