How does rider position affect aero drag or watts?

I find in fast bunch rides that often I will be the only person sitting up in the bunch and many others around me are in the aero position on road bikes (not TT). Is there actually any computational benefit to your avatar being tucked or is it just a visual interest point to try and simulate real riding and the potential positions we switch between, like the water drinking when it detects you are possibly in a recovery state.

It is said that your avatar sitting up in a drafting position indicates that you are getting a draft.

It’s counterintuitive that the other riders getting the draft don’t indicate the same way, but that’s the way it is.

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This Zwift Insider article has the answers.

Most specifically perhaps:

Others around you may also be drafting, but Zwift only has your rider sit up (ride on the hoods), so you know you’re drafting. (Yes: what you see on Zwift is slightly different than what everyone else sees.)

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Exactly.