That physical versions of Nintendo Switch 2 Edition games will include the original Nintendo Switch game and its upgrade pack all on the same game card (i.e. they are exclusively Nintendo Switch 2 game cards, with no download code). Alternatively, some publishers may release Nintendo Switch 2 Edition games as download codes in physical packaging, with no game card.
What confusion? If a box says “Switch” on it, it will run on the Switch and the Switch 2.
If the box says “Switch 2”, it will run on the Switch 2 but not the original Switch.
There are some games that are available for both systems, so make sure to check the system name when buying the game. It has been the same in previous console generations and in consoles from other manufacturers.
The only issues that I foresee are if the eShop makes it hard to understand what system you are buying the game for and if the eShop makes it hard to change the version I am buying.
For me the confusion for a while was the Switch 2 boxes saying “Includes the Nintendo Switch game and the Nintendo Switch upgrade pack.”. Now that I’m reading the statement by Nintendo clarifying things, it’s clear. This article was the first time seeing them saying the games are exclusively Nintendo Switch 2 game cards. The fact there was enough confusion that there have to be articles published clarifying what Nintendo should have said from the start is my concern with Nintendo marketing repeating the confusion from the Wii U era.