No dumb questions, only dumb answers
In short, the individual channels get distorted, summed and “undistorted”, which leads to the desired effect. It’s subtle af but adds up and becomes more pronounced with more channels in play.
Here is my summary from the readme:
Airwindows Console systems sum signals in a way where the resulting soundstage appears less flat, more spacious and more in line with what we are used to from analog mixers. There are a number of variations/flavours of the console concept and this module currently implements the most recent one, Console6, and PurestConsole, which can be selected in the context menu.
NOTE : Due to how the encoding/decoding works, spaciousness and definition will increase with each additional channel. There will be no effect on a single channel at all.
For more info on how this works please check the relevant articles on the Airwindows website itself. There are numerous posts (and videos), because there are a number of different versions of Console. If you feel particularly brave you could also look up threads on Gearslutz or KVR.