Yeah, from the software’s point of view unless you need some extra rsync flags as some have pointed, you end up with an identical view of the files on there, they’ll be mounted exactly at the same places and everything. Just a different filesystem and drive behind it. People have been doing that for decades, before even Linux.
As long as all the attributes like user/group/mode and symlinks are preserved, most distros won’t notice a thing with that method. There’s no filesystem-specific special sauce to make it work or hidden flags or anything, even snaps and flatpaks.
This is not like Windows where your options are clone the partition or reinstall. Linux is a lot simpler and only cares that the files are where they should be with the right permissions.