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Does it that mean that Chrome on Iphone will also support it since it's basically Safari with a Chrome skin?

Yes.

Also, Image decoders are part of the OS on Apple devices so likely all existing apps will support it automatically when iOS updates.

I’m running the iOS 17 beta. Currently, Chrome on iOS 17 does NOT support JPEG XL.

Woohoo. One advantage to the web browser monopoly on iOS. ;)