Zwift does not modify the speed input based on course elevation for a treadmill/run-pod. Unless you are on a treadmill that matches Zwift elevation profiles, such as the Wahoo Kickr Run, or using a 3rd party app to set the elevation (QZ is one such app), then your treadmill elevation setting is the only thing that will slow you down.
I had a couple of riders call me out for that, as I paced them up The Grade, sadly for them I was matching incline using QZ (I paid for it at the top, but it’s always worth it)