This is my understanding as well.
But it will show apps that you downloaded briefly 10 years ago and then removed within seconds of starting them (which I've done many times: "this looks interesting; oh, it wants me to create an account/sign in with Facebook with no option to continue otherwise; no, not worth it; delete..."). And it will show apps which have never been installed on your current device but were on a previous or different device associated to the same account.