No. The G320 tries to move the motor as the steps are received. The motor can lag behind the commanded position by up to 128 encoder counts, but if the motor is out of position by more than 128 counts, the drive will fault.
However, after rereading your post a few times, I guess you could say that it does??
The drive will always try to move the motor to the commanded position, but if the motor can't keep up, it's allowed to lag behind by up to 128 counts, but it'll always be trying to catch up if it can. I can't tell you how the drive does this internally, but they would appear to operate similarly.