How does the AVP photo app work with apple’s AI features?

I updated to the latest version of OS. I’ve been playing around with the Playground App. When I choose the “Person” button/option, it states that: Finding People… Image Playground organizes people when Apple Vision Pro is locked, charging, and connected it Wi-Fi.

What does this mean exactly? Is it searching through the Photo app looking for people in the images? I’m confused as to how this works.

So far… I have powered on the AVP, logged in, taken it off and placed on the desk and left it for hours.. connected to the Wi-Fi and charging and nothing has changed. What gives?

Also, does apple ai do anything with the Photo App? Can I do searches for all photos of my dog and it will appear?