It does, occasionally, for minimizing file extents, as the filesystem only supports a finite amount of them (65535, IIRC).
Your statement is incorrect. The defrag program runs the TRIM command when an SSD is detected, instead of moving parts of files around. You will degrade your SSD if it never has the TRIM command run on it.
Degrade the performance because writing to a freed block requires a 0 write first. TRIM does those 0 writes so future writes take place in pre-0ed cells. So yes, leave what is called deffrag on, even though that is a misnomer as defragmenting only happens to HDDs.
Windows 11 used defrag instead of trim, it was fixed twice, it is only a matter of time before it will occur again, if it did not already, it was found out only thanks to people like us, who questioned it. I just use disk manufacturer's utility. I never take into consideration empty statements like it is supposed to work like that, just like memory managment. 11 leaks memory all the time, even system processes like dwm, explorer, widgets, etc. I prefer to manage RAM myself.
TRIM is all about writing to an SSD. It is faster to write to pre-cleared blocks than it is to overwrite existing data marked as free. TRIM takes blocks marked as free and 0s them out. As far as prolonging the life of a SSD goes, if people are actually worried about this, buy a cheap used Optane drive and move anything with a lot of random read/write access to the Optane drive.
My drive has a performance hit while it's performing a disk-wide TRIM, for about 4 seconds, once a week...
No need to run TRIM that often unless you do an insane amount file creation and deletion. I only run it after a CU install and even then, that is more often is probably needed.