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And yes, it can switch identities using this mode in whonix.

The documentation is correct but not detailed enough. Basically Wasabi can start a new Tor instance or use the one configured by the user or provided by the system as is the case in whonix. To make sure it uses the system's instance you have to start Wasabi with the option '--usetor=EnabledOnlyRunning' or in the Config.json file set '"UseTor": "EnabledOnlyRunning"', another way to achieve the same is by setting the environment variable 'WASABI-USETOR' to EnabledOnlyRunning.