Yeah, it does, don't worry.

Source: MediaMarkt review "I bought the memory card because the internal memory of the Nintendo Switch Lite was too small at 32GB. It's enough for big games. So I haven't noticed or jerks yet. Games load just as fast as games from a cartridge. I have Pokemon Shining Diamond and Pokemon Shield and it's running great. It's also great that the blue 400GB memory card fits my blue Nintendo Switch Lite. :)"