Yes. But AT can only adjust up or down so far. You really want to be riding at the correct intensity as best as possible, if you’ve improved then you might start getting high level threshold workouts thrown at you, except you’re doing Sweet Spot (for example) and whilst still great training. It’s not the same thing as thinking you’re nailing a long threshold session.
Or it might give you shorter and shorter threshold intervals but since you’re way Supra-Threshold you’re still not hitting the plan as intended.
Obviously it won’t always work like that, and small differences will be less significant. I’d want to still have a pretty good idea where FTP is (and have it set close as possible).