No different than Tesla track/performance mode which is also a software switch.
Tesla performance trims are physically different, and the Track Mode switch they have can be freely turned on and off at will, so that's not equivalent to what Volkswagen is doing here.
Also, Track Mode isn't available outside of the Performance trim, despite presumably being pure software. Elon has even talked about making it part of the Acceleration Boost package, though I don't think that has materialized yet: https://www.notateslaapp.com/software-updates/upcoming-featu...