Yes — there is no stream copy here. The browser decodes the track to raw samples and this re-encodes them, to PCM for WAV or to AAC for M4A. WAV from a compressed source can't add back what compression removed, but it won't lose anything more. If you need a bit-for-bit copy of the original track, that needs a demuxer, which means a desktop tool.
Why would I normalise?
Because most transcription services and every podcast host expect a consistent loudness, and −16 LUFS is the usual target for stereo. It's measured properly, to ITU-R BS.1770 with gating, so long pauses don't drag the reading down and make the result too loud. If reaching the target would clip, the gain is held back to leave a decibel of headroom and the result says so.
Does stripping silence break my timings?
Yes, and that's the point of the warning next to it. Removing four seconds of silence moves everything after it four seconds earlier, so a transcript made from the stripped file will not line up with the original video. Leave it off if you're going to sync anything back.
What's the largest file it can take?
About twenty minutes. The whole track is decoded into memory as raw floating-point samples — twenty minutes of 48 kHz stereo is already around 460MB — so past that the tab runs out of room. It refuses with a message rather than crashing. There's no upload, so file size on disk matters much less than duration.
Why are MP3 and FLAC greyed out?
No browser can encode either one. WAV we write ourselves — it's a 44-byte header around raw samples — and AAC is available because the browser's own recorder supports it. MP3 and FLAC would each mean shipping a codec to every visitor, which is a poor trade for two formats when WAV already does the job.