That does look similar to what I've done on Start by dragging pinned icons on top of others to manually create groups. E.g., I have 13 groups including: News & Information, Utilities, System, Hardware, Internet, Entertainment, Audio Editing, Image Editing, etc. So if they can automate some of that successfully (not sure I'd trust MS to create the groupings that matter to me, but the starting list does look pretty good), that seems like a good thing. More important for MS, it's probably helpful to other users who don't bother going through the trouble of manually grouping them.
However, if MS is going to make further changes to Start, what I really wish they would do is bring back/fix Jump Lists for pinned apps. This is a daily source of pain for me that this has been missing since Windows 11. My crappy work-around has been to pin an absurd number of apps to the Taskbar because Jump Lists do work from the Taskbar, but that's a terrible work-around. Clogs my Taskbar and renders the Start Menu largely pointless for apps thot work with documents.
On the other hand, if this new auto-grouping preserves Jump Lists from the All Apps list (bizarrely, Jump Lists work from All Apps on the Start menu, which is a slow-to-access app list, so the last place anyone would ever want a Jump List) AND groups the apps similarly to how I do it manually, then I'll be a huge fan of this new feature for the Jump List restoration to my fast-access app icons.
Facebook
Twitter
Instagram