[BT]P7 includes for compatibility: tiny (.COM), small, compact, medium, large, and large w/ overlays (which can use EMS when available). There are DPMI clients for [BT]P7 that make it possible to switch to protected mode and use more memory.

It definitely generated offset-only pointers in the tiny, small, and medium memory models because that's how they referred to data with the common DS segment. I did plenty of memory and instruction-level debugging in [BT] Profiler/Debugger and inspected plenty of pointers where they lived in RAM.