AFAIK it's just yolo mode, which doesn't actually do any checks like Claude Code's auto-mode (which has a model checking all commands for safety).
No, it says “auto approved” after every evaluated command. Does it work? No idea, I can’t think of a time it ever stopped, but I’m also not ever doing anything dangerous with it. It does use another model to evaluate the commands though.
"Approve for me" used to work without issue for me when GPT 5.5 was the latest model.
Nowadays it routinely rejects "git push" to the project's repository.