Generated frames are created using a neural network, they have nothing to do with the actual game scripts and game loop and input polling and stuff. FSR does generate frames to interpolate between real frames but things like physics and input are not being generated as well. It's only visual. I guess maybe you have to have some basic knowledge about how a computer program and game engine works to understand this.

Basically the CPU steps through the simulation in steps. When you use frame gen, if it lowers the actual frame rate, then the CPU is making less loops per second over everything, like the physics updates, input polling(capturing key presses and mouse events), and other stuff like this.