Windows 11 idles at around 60 Hz in 120 Hz modes on my VRR ("G-SYNC Compatible") display when the "Dynamic refresh rate" option is enabled, and supports VRR for applications other than games (e.g., fullscreen 24 FPS video playback runs at 48 Hz* via VRR rather than mode switching, even with "Dynamic refresh rate" disabled).

* The minimum variable refresh rate my display (LG C4) supports is 40 Hz.