Yes, but by default with a somewhat moderate amount: +2 m virtual distance per meter of positive elevation, -1 m distance per meter of negative elevation.
I changed it to +7/-3, which seems to fit my routes better.
Even better would be a calculation based on "Grade Adjusted Pace", perhaps you would like to vote for this function:
https://ideas.runalyze.com/posts/270/please-enable-vo2max-distance-correction-via-gap