Yes, SFD technically always works with tokens. The difference is only in how you obtain them.
A token is a single activation that is manually purchased and used. It's required for each vehicle and for each process. Those who do this without an SFD subscription are constantly buying small amounts and manually copying tokens.
With the SFD subscription, the process of obtaining the unlock code changes: VCDS will automatically retrieve the unlock code during the subscription period. Technically, nothing changes, but the steps of purchasing the token and copying it are no longer necessary.
For searching within this forum, this is a common point of confusion, so here's a clear distinction: Token = one-time purchase. Subscription = ongoing period with automatic activation.
If you have an SFD subscription for your interface, you no longer need to use tokens. VCDS handles everything automatically in the background.
Fundamentals of the SFD system:
https://community.dieselschrauber.org/en/viewtopic.php?t=31009
Subscription and qualifying interfaces:
https://shop.dieselschrauber.org/en/vcds-sfd-abo-p-367.php