Hi Kalel
Greetings!
Welcome to the Microsoft Q&A Platform. Thank you for reaching out & I hope you are doing well.
Yes, you are correct in your understanding of how Point-to-Site (P2S) VPN connections work within Azure Virtual WAN.
NOTE: When you configure a P2S VPN client in Azure Virtual WAN, the default behavior is that all traffic from the client will be routed through the Azure Virtual WAN. This means that both internet-bound traffic and traffic destined for your Azure Virtual Network will go through the Azure Virtual WAN.
In Azure Virtual WAN, the P2S VPN is intended to offer a more centralized and managed connectivity approach. Consequently, it does not support split-tunneling in the same manner. All traffic will be routed through the Azure Virtual WAN, enhancing security and management.
Refer: https://learn.microsoft.com/en-us/azure/virtual-wan/virtual-wan-point-to-site-portal
Refer: https://learn.microsoft.com/en-us/azure/virtual-wan/how-to-forced-tunnel
I hope this has been helpful!
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Regards
Ganesh