Fake edit: Not sure if this post is still needed after
@oldpuck post, but I already wrote it by the time I read it so I will just post it.
It was mostly explained already, but...
NVN is a layer between the game and the hardware. Switch games are communicating with the X1 GPU through it. And Switch 2 will use NVN2 to communicate with the Drake GPU.
For a OG game to communicate with the new GPU, devs would ideally migrate the game to NVN2. But this won't happen for the entire library, so there will be a translation layer between the NVN and the Ampere GPU.
A middle ground solution is NVN having a way for devs to know they're running on a more powerful hardware. They can then tune up the game to setting which would run in single digits fps on OG when they detect it's NG and test to make sure it's working properly on OG while enhanced on NG. But NVN would still be thinking it's a Maxwell GPU and the translation layer would translate that to Ampere.
DLSS isn't a feature present on NVN as X1 doesn't have Tensor cores, so adding support to it requires a huge lift for an unlikely case (devs having time to add DLSS but not enough to migrate to NVN2). The only way for that to make sense to me at all is if they decided to update NVN to be used for making native versions for both systems and keep NVN2 be for NG exclusives, without any legacy code. Which is not how I would expect them to handle, to be clear, but I could see some reasoning behind that at least.