From @7eter below.
“Frustration-Free Setup utilizes a network of helper devices (such as compatible Echo devices, Fire TV devices, routers, or smartphones with certain Amazon apps) that are already connected to the internet to help you set up new devices in fewer steps. When you turn on a new compatible device, helper devices in range can help it connect to your networks and/or to Alexa via wifi, Zigbee, Bluetooth, or Matter.”
“Freely” if you enable the setting as the user posted above.
The verification still needs one of the devices listed in my post to be active on your wifi to allow the setup and communication.
The auth is likely done by device to device handshake. Its just that there isn’t a human involved.
Don’t get me wrong I hate Amazon as much as anyone and would never have one of their devices in my home.
But most of the other posts in this thread are missing the technical aspect of the question.