Most people use terms like provisioned or commissioned, but yes, it's a software configuration setup.
That doesn't matter. The setup doesn't require anything to have an external internet connection. For the setup, it is the wall connector itself acting as a wi-fi access point for a device to connect directly to it. There's no external connection to any other router or some other wi-fi system needed. You can just have your phone there in front of it connect directly to the wall connector's signal.
If there were ever any interesting functions they add in future software versions, and they are features you want, then sure, you would need to figure out some way to update it (which can be done), but that is also not really necessary for regular use.