Live air traffic is unfortunately quite broken. There is no improvement at all noticeable from 2020 (maybe a fair amount of regression).
Planes spawn suddenly, disappear on landing, hover around and have unrealistically short landings and takeoffs.
Livery matching is somewhat functional but seems to fall back to the defaults a fair bit. Planes also don’t always stream in properly or are being too aggressively Lod’ed out and lose wings / fuselages / landing gear and engines.
I recommend using FSLTL or one of the ATC programs that inject traffic instead as it’s almost certain the default offering will never get improved if the track record from FS2020 is to be followed.
To be fair though there was no mention of any improvement here outside of the liveries, so I guess temper your expectations.