>>It means exactly that and that is that your MacBook is rarely used on battery alone and without being connected to electrical power. My MacBook Pro remain connected to power 98% of the time and is rarely on battery alone. I get the same notification. There is nothing wrong with your MacBook. It is just making your aware that it has noticed that and will adjust battery charging accordingly.
My MBP is rarely used when disconnected to the charger. I thought the battery had always been reporting 100% -- even after installing Big Sur a few months ago.
Yesterday, after installing Big Sur 11.2.1 and after temporarily disconnecting the charger for a couple of hours, the battery was reporting 78%. After reconnecting the charger, the battery stopped charging at 97%. The Battery applet said "Charging On Hold" and "Rarely used on battery".
As a test this morning, I disconnected the charger again for a few minutes. After reconnecting the charger, the battery stopped charging at 95% -- where it's been all day. The Battery applet still says "Charging On Hold" and "Rarely used on battery".
Is it normal for 'Charging On Hold' to result in the battery no longer reaching 100%? Also, any idea why the battery charged to 97% yesterday ... but today, after temporarily disconnecting the charger again, it's charging to only 95%? I'm almost afraid to disconnect the charger again! ;^)