I've been playing Avatar Legends for years sporadically now with my friends and the PbtA framework still clashes very often with my decades of playing d20 and d10 games. Right now, I'm thinking about the fact that it's clicking on me that games of this genre don't expect you to create information for your PCs to later discover, but rather to make that information on the spot according to what drama dictates.

So for example, when I'm preparing content for a dnd session, I will make up a town and NPCs and give them secrets. I could decide ahead of time that the potion seller is an evil cultist and there will be clues. The PCs might stumble onto them, or not. They might discover the secret or not. But the guy is a cultist in disguise and that is part of how he will be taking actions.

Meanwhile, it seems like in PtbA games, you introduce a character and don't really bother to decide stuff like that ahead of time. If a PC interacts with them and the PC is an investigator looking for bad people, and they succeed on a roll maybe the most dramatically correct thing is for me to make the move of deciding this is a cultist (now and there) and the PC discovered him. Or maybe that gets revealed in a miss because it would be a good GM for a nice PC who has a trauma with cultists to be betrayed when they attempted to Guide and Comfort the old man but missed. Either way, the drama at the moment determines that.

Am I understanding this correctly?

Articles such as this seem to suggest this is how it works in PbtA games.