(response continued from reply to the apple engineer in the accepted answer to work around the dev forum's 500 character comment limit)
fwiw, the page https://developer.apple.com/documentation/realitykit/loading-entities-from-a-file describes .reality files in the context of the Reality Composer app (the old one), not Reality Composer Pro. Until you mentioned it just now, it wasn't clear to me that a RealityKitContent bundle contains a .realty file, as this implementation detail is not exposed in any user-facing way in Reality Composer Pro or Xcode.
The page https://developer.apple.com/documentation/visionOS/designing-realitykit-content-with-reality-composer-pro does mention .reality files in two callouts that specifically refer to the their importance for performance reasons, but without deep investigation, this is confusing to a new user.
I didn't notice that my project was using .reality files at all until just now when, motivated by your developer forums answer, I happened to look in /Users/drew/Library/Developer/CoreSimulator/Devices/A50E7AE3-EDE3-44BA-878B-E0DBE4A6F834/data/Containers/Bundle/Application/4C2EF75B-AE35-42B0-8A5B-ABE2B74CCE82/Baseball.app/RealityKitContent_RealityKitContent.bundle
It would be nice if https://developer.apple.com/documentation/realitykit/loading-entities-from-a-file
and the documentation for ModelEntity https://developer.apple.com/documentation/realitykit/modelentity and Entity(named:in:) https://developer.apple.com/documentation/realitykit/entity/init(named:in:) could be updated to make this clearer.