Yes, that was my understanding as well. But I experience a Domain=NSURLErrorDomain Code=-1004 "Could not connect to the server." in my App Clip once NLC is enabled. Everything else on that device works as expected, the parent full app, Safari etc.

This answer should be put on top of this thread along with the required step on the command line. defaults write com.apple.dt.Xcode DVTEnableCoreDevice enabled