HI @Dipto ,
Thank you for posting question to Microsoft Q&A.
According to your question - Yes. The AutoArchive function moved your emails based on your condition into a *.pst file and those files are only available via the output *.pst.
This also means that your inbox is having more space after this process. It depends on your internet connection that this will also update on Outlook on the web (OWA) - you will need to keep your Outlook Desktop Application open during the time so it could finish the synchronization between it and OWA. Unless some emails are affected by possible retention policy, some emails might remain the same in OWA.
Please review this function via article: https://support.microsoft.com/en-us/office/autoarchive-settings-explained-444bd6aa-06d0-4d8f-9d84-903163439114
Let me know once you have waited for at least one day and double-checked again everything.
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