Understanding if Cross Join Lateral is working as expected

Question

I have two CTEs:

cluster_groups (cluster_id [int], cluster_centroid [points_geom])

subset_cr (imei [identifier], points_geom [geometry], time_created )

This is my code:

SELECT 
       
       cg.cluster_id ,
       routes.imei ,
       routes.time_created::date as date,
       min(routes.time_created) as min_per_imei_cluster 
FROM cluster_groups as cg

CROSS JOIN LATERAL (

  SELECT routes.time_created,routes.imei 
  
  FROM subset_cr as routes
  
  where st_distance(
  st_transform(routes.points_geom, 4326)::geography ,
  st_transform(cg.cluster_centroid, 4326)::geography ) < 100

  

  
) routes

group by 1,2,3

The code generates a result set, but I want to ask if my understanding is correct. Here is what I think is happening:

For each value of cg.cluster_centroid, it is compared one by one to each row of routes.points_geom.

So for example if there are 2 rows of data in each CTE, then the following will happen sequentially AND return a result at each stage, so there will be 4 total outputs of st_distance -

st_distance runs for cluster_1 and the first row of points_geom column
st_distance runs for cluster_1 and the second row of points_geom column

st_distance runs for cluster_2 and the first row of points_geom column
st_distance runs for cluster_2 and the second row of points_geom column

Is my understanding correct? OR is st_distance considering ALL rows of routes.points_geom at once for each cluster.