It doesn’t do that unless you turn on vivid photographic styles. It’s tuned pretty much like a dedicated camera.

This does annoy many people who then switch to Snow/BeautyCam to actually take their pictures since they want to look prettier.

By default, the pictures they take have nothing to do with reality. You can check it yourself by comparing the picture on the screen with the scene you pictured. Try it with some clouds f.e. This was my experience.

I dn, all the pictures of my friends and family and dog look pretty close to reality. I'm not sure I care if a cloud is slightly different, to be honest.

I think there is some sky recoloring, but eh, that's how camera AWB always works. Dedicated cameras try to make everything noon daylight if you leave them in auto mode; there are manual mode phone apps for this just like there's manual controls on the camera.

There seems to be an assumption here that dedicated cameras* always shoot in raws you can spend your time editing later, but that's not the case. If I shoot a concert or wedding and want to return the photos the next day, and in-camera JPEG or HEIF looks good, I'm shooting that.

* you can't make me say "DSLR", they aren't all DSLRs

Every camera does that to a degree pretty much by definition. I don’t think iphones would fair worth to their adherence to reaity than a “proper” camera does on auto.