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The short version is that there are two images and sidecar/xmp file sandwiched into one file. First is the standard dynamic range image, what you’d expect to see from a jpeg. Second is the gain map, an image whose contents include details outside of SDR. The sidecar/xmp file has instructions on how to blend the two images together to create a consistent HDR image across displays.
So its HDR-ish enough for the average person. I like this solution, especially after seeing the hellscape that is DSLR raw format support.
I’m convinced the AI had the hand on a loop. It’s like watching someone’s first presentation in speech and debate class. It will look better eventually, but I doubt it’ll figure out the subtle emphasis great body language adds to speech.