Yep, AOD on WearOS works the exact same way by moving the display ever so slightly in order to prevent burn-in.
Although I hear this has changed from being a system-level thing to a responsibility on the developer (so take caution with third party watch faces), but I don't currently have a primary source for that so take it with a grain of salt.
Using the pixel 6 since may last year. The always on display hasn't burned in whilst my notification area and homebar have. The notification area having burned in is due to me having my brightness at max all of the time. Under normal usage it probably won't happen that quickly.