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Nintendo reportedly showed a demo of the ‘Switch 2’ console at Gamescom which included visuals comparable to the PS5 and Xbox Series X.
(www.videogameschronicle.com)
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I'll believe they made something on the same level as the competitors when the console actually comes out. An unreleased demo console is not something you should be using as a benchmark for how good the visuals are since the product will most likely go through a significant amount of changes in-between the demo and release.
Even then, there's the chance that if the console is coming out a few days later, there is no guarantees they didn't use an old demo console that is outdated compared to what will be released or wasn't made specifically with the goal in mind of overselling the console by pouring resources into making the demo console actually better than the release one.