Apple USB-C to Headphone Jack and Apple Studio Display

I'm posting this since I couldn't find this information on the web. I can confirm that the Apple USB-C to Headphone Jack adapter, when connected to one of the Apple Studio Display (2022)'s USB-C ports, works properly. This enables me to plug my Apple wired earbuds to my Studio Display, itself plugged to my Mac via the Thunderbolt 3 cable.

The sound quality is excellent. Volume is good. I'm not sure where the digital to analog converter is - it must be tiny and built into the USB-C plug! The device shows as "Adapter USB-C to 3.5 mm jack" (using MacOS Ventura 13.0.1). However, my Apple earbuds's built-in microphone doesn't seem to be recognised. Instead, MacOS only sees the Studio Display's microphone. Which is fine for me.