Not correct. It is a travel authorization for people from countries that don't need a visa.
A passport alone from a visa free country would be proof that a person doesn't need a visa.
This is an additional "screening" that you pass other tests to enter the EU. For security.
I am guessing that for US citizens they have a way to access your FBI records or something similar.
The rules of travel to Europe have changed. Starting six months after EES, some 1.4 billion people from over 60 visa-exempt countries are required to have a travel authorisation to enter most European countries.
travel-europe.europa.eu
What it is is yet another PITA that makes travel more problematic. And some that used to be going to the EU
will no longer be allowed based upon their criminal records despite having a passport from a Visa free country.