SharePoint Online: Manage Access Window behavior for External Users

Hi Folks,

I'm wondering if someone can speak to how external users show up in the "Manage Access" dialogue box in SharePoint Online.

In testing, it seems initially External Users, when initially invited to a file or folder using the SHARE function, will show up in the LINKS tab Manage Access window.

It then seems that once the external user has verified their identity and access the first time, they are moved into the "People" tab of the Manage Access window.

Is this the correct understanding of how External Users are placed into the "People" tab?