Continuity Camera - better connectivity when plugged in vis USB C, or is this just for charging?

I have an iPhone 15 and a newish MacBook Air M2. Does Apple Continuity Camera have better connectivity when plugged into my MacBook Air, or is connect connectivity only via Wi-Fi/ Bluetooth so no difference at all.

I have ultrafast sky broadband and I'm close to the router, however once or twice there has been a distinct stuttering in terms of audio when presenting a demonstration.

I think it is best to close all apps down and as many programs as possible. Also to put my phone on Do Not Disturb, perhaps some notifications are interrupting the signal slightly.

So I'm hoping to find out definitively techy answer to whether plug-in in my phone improves connectivity, or if that is just for charging purposes, as I cannot find anything when Googling it. Thanks!