This is wrong. A venv is a hierarchy of folders containing a config file, as well as some symlinks to Python (or stub executables on Windows). "How Python does it" is that when it starts up from the symlink, it looks for the config file at a relative path; if that checks out, it uses hard-coded rules to add another relative path to sys.path. PYTHONPATH is never involved.

The venvs created by the standard library `venv`, as well as by uv (and by the third-party `virtualenv` that formed the original basis for `venv`), also happen to include "activation" scripts that manipulate some environment variables. PYTHONPATH is not among these. It manipulates PATH, so that the venv's symlink is on the path. And it may unset PYTHONHOME.