Guys, this is ... Wow. I pulled over to share this.
Let me start by saying - this is 100% NOT active noise cancelling. I understand why they renamed it ARNR instead of ANC. It is not going to completely silence the cabin.
Okay, with that out of the way, it works! There was a period (about 5 minutes/3 miles of driving out of the neighborhood) where the ARNR had to calibrate.
After calibration, it works. Stated it was "optimized for front passengers" and toggling on and off, it is clear there is a noise reduction. It's hard to describe - but it's there. Kind of like a reduction in the tire rolling sound.
I took a video. The video doesn't pick up the subtle change for me in the driver's seat. I can share the video (DM me) but the video will not do it justice. You'll just see me toggle ARNR on and off.
That said, I was excited for this update, and now I know why Tesla renamed it. It's NOT ANC, but it is absolutely ARNR, and it works.
Note: I'm not in the FSD Beta
Tagging some that asked about this specifically:
@jebinc @WilliamG @2021plaid
@MP3Mike @Tigers @asimo3089 @RobK @Zaker89 @GrnSqrl